Engrossments
Introduction		Posted on 01/12/2009
1st Engrossment		Posted on 04/17/2009
2nd Engrossment		Posted on 04/20/2009
3rd Engrossment		Posted on 04/21/2009
4th Engrossment		Posted on 04/24/2009
5th Engrossment		Posted on 05/13/2009

Committee Engrossments
1st Committee Engrossment		Posted on 04/16/2009

Conference Committee Reports
CCR-HF0002		Posted on 05/13/2009

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:

Subd. 11.

Permanent school fund reporting.

The commissioner shall biannually
report to the Permanent School Fund Advisory Committee and the legislature deleted text beginon the
management of the permanent school trust fund that shows how the commissionerdeleted text endnew text begin the
amount of the permanent school fund transfer and information about the investment of the
permanent school fund provided by the State Board of Investment. The State Board of
Investment shall provide information about how theynew text end maximized the long-term economic
return of the permanent school deleted text begintrustdeleted text end fund.

Sec. 2.

Minnesota Statutes 2008, section 120A.40, is amended to read:

120A.40 SCHOOL CALENDAR.

(a) Except for learning programs during summer, flexible learning year programs
authorized under sections 124D.12 to 124D.127, and learning year programs under section
124D.128, a district must not commence an elementary or secondary school year before
Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops
may be held before Labor Day. Districts that enter into cooperative agreements are
encouraged to adopt similar school calendars.

(b) A district may begin the school year on any day before Labor Daynew text begin:new text end

new text begin (1) new text endto accommodate a construction or remodeling project of $400,000 or more
affecting a district school facilitydeleted text begin.deleted text endnew text begin;new text end

new text begin (2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
with a district that qualifies under clause (1); or
new text end

deleted text begin A schooldeleted text endnew text begin (3) if thenew text end district deleted text beginthatdeleted text end agrees to the same schedule with a school district
in an adjoining state deleted text beginalso may begin the school year before Labor Day as authorized
under this paragraphdeleted text end.

Sec. 3.

Minnesota Statutes 2008, section 122A.60, subdivision 1a, is amended to read:

Subd. 1a.

Effective staff development activities.

(a) Staff development activities
must:

(1) focus on the school classroom and research-based strategies that improve student
learning;

(2) provide opportunities for teachers to practice and improve their instructional
skills over time;

(3) provide opportunities for teachers to use student data as part of their daily work
to increase student achievement;

(4) enhance teacher content knowledge and instructional skills;

(5) align with state and local academic standards;

(6) provide opportunities to build professional relationships, foster collaboration
among principals and staff who provide instruction, and provide opportunities for
teacher-to-teacher mentoring; and

(7) align with the plan of the district or site for an alternative teacher professional
pay system.

Staff development activities may include curriculum development and curriculum training
programs, deleted text beginanddeleted text end activities that provide teachers and other members of site-based teams
training to enhance team performancenew text begin, and basic first aid, focusing on certification for
CPR and the use of automatic external defibrillatorsnew text end. The school district also may
implement other staff development activities required by law and activities associated with
professional teacher compensation models.

(b) Release time provided for teachers to supervise students on field trips and school
activities, or independent tasks not associated with enhancing the teacher's knowledge
and instructional skills, such as preparing report cards, calculating grades, or organizing
classroom materials, may not be counted as staff development time that is financed with
staff development reserved revenue under section 122A.61.

Sec. 4.

Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to read:

Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2, for in-service education for programs under section 120B.22, subdivision
2, for staff development plans, including plans for challenging instructional activities
and experiences under section 122A.60, and for curriculum development and programs,
other in-service education, teachers' workshops, teacher conferences, the cost of
substitute teachers staff development purposes, preservice and in-service education for
special education professionals and paraprofessionals, and other related costs for staff
development efforts. A district may annually waive the requirement to reserve their basic
revenue under this section if a majority vote of the licensed teachers in the district and
a majority vote of the school board agree to a resolution to waive the requirement. A
district in statutory operating debt is exempt from reserving basic revenue according to
this section. Districts may expend an additional amount of unreserved revenue for staff
development based on their needs. With the exception of amounts reserved for staff
development from revenues allocated directly to school sitesnew text begin and any amounts spent for
first aid or CPR and automatic external defibrillator trainingnew text end, the board must initially
allocate 50 percent of the new text beginremaining new text endreserved revenue to each school site in the district on
a per teacher basis, which must be retained by the school site until used. The board may
retain 25 percent to be used for district wide staff development efforts. The remaining
25 percent of the revenue must be used to make grants to school sites for best practices
methods. A grant may be used for any purpose authorized under section 120B.22,
subdivision 2, 122A.60, or for the costs of curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, substitute teachers for
staff development purposes, and other staff development efforts, and determined by
the site professional development team. The site professional development team must
demonstrate to the school board the extent to which staff at the site have met the outcomes
of the program. The board may withhold a portion of initial allocation of revenue if the
staff development outcomes are not being met.

Sec. 5.

Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

(a) By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By deleted text beginJanuarydeleted text endnew text begin Februarynew text end 15 of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 6.

Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:

Subd. 3.

Failure to limit expenditures.

If a district does not limit its expenditures in
accordance with this section, the commissioner may so notify the appropriate committees
of the legislature by no later than deleted text beginJanuary 1deleted text endnew text begin February 15new text end of the year following the end
of that fiscal year.

Sec. 7.

Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum equalization aid attributable to a
pupil must be calculated using the resident district's average general education revenue
and referendum equalization aid per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum equalization aid attributable to that pupil, calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, minus (3) the amount of special education aid for children
with a disability received on behalf of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the
school day, the amount of general education revenue and referendum equalization aid,
excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction
and services outside of the regular classroom, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
served by a cooperative unit without a fiscal agent school district, the general education
revenue and referendum equalization aid attributable to a pupil must be calculated using
the resident district's average general education revenue and referendum equalization aid
excluding new text begincompensatory revenue, new text endelementary sparsity revenuenew text begin,new text end and secondary sparsity
revenue. Special education aid paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the amount of the reduction in
the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
expenditures on the resident school district's books of account under sections 123B.75
and 123B.76. If the resident district's special education aid is insufficient to make the full
adjustment, the remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, a site approved under section 125A.515,
an intermediate district, a special education cooperative, or a school district that served
as the applicant agency for a group of school districts for federal special education aids
for fiscal year 2006 may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum equalization aid" means the sum
of the general education revenue according to section 126C.10, subdivision 1, excluding
alternative teacher compensation revenue, plus the referendum equalization aid according
to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
7, paragraphs (a) to (c).

Sec. 8.

Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:

Subd. 2.

Foreign exchange pupils.

Notwithstanding section 124D.02, subdivision
3, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a
cultural exchange program new text beginregistered with the Office of the Secretary of State under
section 5A.02 new text endmay be counted as a resident pupil for the purposes of this chapter
and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has
graduated from high school or the equivalent.

Sec. 9.

Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must allocate its compensatory
revenue to each school building in the district where the children who have generated the
revenue are served unless the school district has received permission under Laws 2005,
First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue
according to student performance measures developed by the school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
amount of compensatory revenue that the district receives to school sites according to a
plan adopted by the school board. The money reallocated under this paragraph must be
spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
including students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) deleted text beginIf the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate
the revenuedeleted text endnew text begin Notwithstanding section 123A. 26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unitnew text end.

(e) A district with school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district must report to the department any adjustments it
makes according to this paragraph and the department must use the adjusted compensatory
revenue allocations in preparing the report required under section 123B.76, subdivision 3,
paragraph (c).

Sec. 10.

Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:

Subd. 4.

Separate accounts.

Each district new text beginand cooperative unit new text endthat receives basic
skills revenue shall maintain separate accounts to identify expenditures for salaries and
programs related to basic skills revenue.

Sec. 11.

Minnesota Statutes 2008, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board or shall be
called by the board upon written petition of qualified voters of the district. The referendum
must be conducted one or two calendar years before the increased levy authority, if
approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday
in November. The ballot must state the maximum amount of the increased revenue per
resident marginal cost pupil unit. The ballot may state a schedule, determined by the
board, of increased revenue per resident marginal cost pupil unit that differs from year
to year over the number of years for which the increased revenue is authorized or may
state that the amount shall increase annually by the rate of inflation. For this purpose, the
rate of inflation shall be the annual inflationary increase calculated under subdivision 2,
paragraph (b). The ballot may state that existing referendum levy authority is expiring. In
this case, the ballot may also compare the proposed levy authority to the existing expiring
levy authority, and express the proposed increase as the amount, if any, over the expiring
referendum levy authority. The ballot must designate the specific number of years, not to
exceed ten, for which the referendum authorization applies. The ballot, including a ballot
on the question to revoke or reduce the increased revenue amount under paragraph (c),
must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice
required under section 275.60 may be modified to read, in cases of renewing existing
levies at the same amount per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
SCHEDULED TO EXPIRE."

The ballot may contain a textual portion with the information required in this
subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per resident marginal cost
pupil unit times the resident marginal cost pupil units for the school year beginning in
the year after the levy is certified shall be authorized for certification for the number of
years approved, if applicable, or until revoked or reduced by the voters of the district at a
subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing levies,
the notice may include the following statement: "Passage of this referendum extends an
existing operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board and shall be called
by the board upon the written petition of qualified voters of the district. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number
of qualified voters in excess of deleted text begin15deleted text endnew text begin 30new text end percent of the registered voters of the district on
the day the petition is filed with the board. A referendum invoked by petition must be
held on the date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(f) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for petitions filed after July 1, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:

Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval
by, the commissioner in accordance with the procedures and limits in subdivision 1,
paragraphs (a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease
real or personal property with an option to purchase under a lease purchase agreement, by
which installment contract or lease purchase agreement title is kept by the seller or vendor
or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase
agreement must not be included in the calculation of net debt for purposes of section
475.53, and does not constitute debt under other law. An election is not required in
connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to
acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a school district deleted text beginrequired to have a comprehensive plan for the elimination of
segregationdeleted text end new text beginwhich is eligible for revenue under section 124D.86, subdivision 3, clause (1),
(2), or (3), and new text endwhose plan has been determined by the commissioner to be in compliance
with Department of Education rules relating to equality of educational opportunity and
school desegregation and, for a district eligible for revenue under section 124D.86,
subdivision 3, clause (4)new text begin or (5)new text end, where the acquisition of property under this subdivision is
determined by the commissioner to contribute to the implementation of the desegregation
plan; or

(2) a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1) if the facility acquired under this subdivision is to
be primarily used for the joint program and the commissioner determines that the joint
programs are being undertaken to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized
by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building
or land shall include personal property.

Sec. 13.

Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:

Subd. 2.

Retired employee health benefits.

new text begin(a) new text endA district may levy an amount up
to the amount the district is required by the collective bargaining agreement in effect
on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable,
before July 1, 1998, if a sunset clause is in effect for the current collective bargaining
agreement. The total amount of the levy each year may not exceed $600,000.

new text begin (b) In addition to the levy authority granted under paragraph (a), a school district
may levy for other postemployment benefits expenses. For purposes of this subdivision
"postemployment benefits" means benefits giving rise to a liability under Statement No.
45 of the Government Accounting Standards Board. A district seeking levy authority
under this subdivision must:
new text end

new text begin (1) create or have created an actuarial liability to pay postemployment benefits to
employees or officers after their termination of service;
new text end

new text begin (2) have a sunset clause in effect for the current collective bargaining agreement
as required by paragraph (a); and
new text end

new text begin (3) apply for the authority in the form and manner required by the commissioner
of education.
new text end

new text begin If the total levy authority requested under this paragraph exceeds the amount established
in paragraph (c), the commissioner must proportionately reduce each district's maximum
levy authority under this subdivision.
new text end

new text begin (c) The maximum levy authority under paragraph (b) must not exceed the following
amounts:
new text end

new text begin (1) $24,000,000 for taxes payable in 2010;
new text end

new text begin (2) $50,000,000 for taxes payable in 2011; and
new text end

new text begin (3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
the sum of the previous year's authority and $19,000,000.
new text end

Sec. 14.

Minnesota Statutes 2008, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.

(b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certifynew text begin eithernew text end thatnew text begin: (1)new text end its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this sectionnew text begin; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous yearnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2010
and later.
new text end

Sec. 15.

Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum equalization aid attributable
to that pupil for the portion of time the pupil receives special instruction and services
outside of the regular classroom, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, minus (3) special education aid attributable to that pupil, that is
received by the district providing special instruction and services. For purposes of this
paragraph, general education revenue and referendum equalization aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
district or cooperative providing special instruction and services for the pupil, or to the
fiscal agent district for a cooperative, must be increased by the amount of the reduction
in the aid paid to the resident district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining adjustment shall be made to other
state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of
the district average general education revenue per pupil unit minus an amount equal to the
product of the formula allowance according to section 126C.10, subdivision 2, times .0485,
calculated without deleted text beginbasic skillsdeleted text endnew text begin compensatorynew text end revenue and transportation sparsity revenue,
times the number of pupil units for pupils attending the area learning centerdeleted text begin, plus the
amount of compensatory revenue generated by pupils attending the area learning centerdeleted text end.

Sec. 16.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:

Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund deleted text beginor postemployment benefitdeleted text end liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; deleted text beginand
deleted text end

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g, paragraph (b)new text begin; and
new text end

new text begin (10) postemployment benefit liabilities pursuant to section 475.52, subdivision 6, for
municipalities other than school districtsnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
new text end

Sec. 17. new text beginEARLY GRADUATION INCENTIVES PROGRAM WORKING
GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of education to convene. new text end

new text begin The commissioner of
education must convene a working group to study the effects of an early graduation
incentives program for highly motivated high school junior and seniors on Minnesota's
K-12 and Higher Education Systems.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The working group's membership consists of the
commissioner of education, two representatives chosen by the speaker of the house, two
senators named by the Subcommittee on Committees of the senate Committee on Rules
and Administration, one superintendent selected by the Minnesota Association of School
Administrators, one person selected by the Minnesota School Boards Association, two
high school teachers selected by Education Minnesota, one representative of higher
education chosen by the University of Minnesota, one higher education representative
chosen by the Minnesota State Colleges and Universities board, two persons selected by
the Minnesota Private College Council, one person chosen by the Minnesota Council
for the Gifted and Talented, and at least one representative of the business community
selected by the Minnesota Chamber of Commerce.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The working group must evaluate the benefits of an early
graduation incentives program designed to engage highly motivated high school juniors
and seniors. The working group must analyze the potential cost savings to the state and the
impact on, and the interplay with, the state's postsecondary enrollment options program.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin The advisory group is not subject to Minnesota Statutes,
section 15.059.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The advisory group must report its recommendations to the
education policy and finance committees of the legislature by January 15, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text beginONETIME GENERAL EDUCATION REVENUE REDUCTION
REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin General education reduction. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 126C.13 and 126C.20, the state total general education aid for fiscal year 2010 is
reduced by $275,600,000. The aid reduction must be allocated among school districts and
charter schools in proportion to the school district or charter school's general education
revenue for fiscal year 2008 under Minnesota Statutes, section 126C.10, or Minnesota
Statutes, section 124D.11, subdivisions 1 and 2.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of federal fiscal stabilization funds. new text end

new text begin The commissioner must
offset the onetime general education aid reduction for each school district and charter
school under subdivision 1 with an equal amount of federal aid from the fiscal stabilization
account in the federal fund.
new text end

Sec. 19. new text beginAPPROPRIATIONS; GENERAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:
new text end

	new text begin $ new text end	new text begin 3,916,460,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 5,563,965,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The 2010 appropriation includes $555,864,000 for 2009 and $3,360,596,000 for
2010.
new text end

new text begin The 2011 appropriation includes $1,438,969,000 for 2010 and $4,124,996,000
for 2011.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

new text begin For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
new text end

	new text begin $ new text end	new text begin 48,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 52,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section
127A.49:
new text end

	new text begin $ new text end	new text begin 980,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 1,056,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The 2010 appropriation includes $140,000 for 2009 and $840,000 for 2010.
new text end

new text begin The 2011 appropriation includes $310,000 for 2010 and $746,000 for 2011.
new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota
Statutes, section 123A.485:
new text end

	new text begin $ new text end	new text begin 693,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 931,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The 2010 appropriation includes $0 for 2009 and $693,000 for 2010.
new text end

new text begin The 2011 appropriation includes $255,000 for 2010 and $676,000 for 2011.
new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:
new text end

	new text begin $ new text end	new text begin 14,303,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 17,785,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The 2010 appropriation includes $1,647,000 for 2009 and $12,656,000 for 2010.
new text end

new text begin The 2011 appropriation includes $4,680,000 for 2010 and $13,105,000 for 2011.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:
new text end

	new text begin $ new text end	new text begin 18,366,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 22,636,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The 2010 appropriation includes $2,077,000 for 2009 and $16,289,000 for 2010.
new text end

new text begin The 2011 appropriation includes $6,024,000 for 2010 and $16,612,000 for 2011.
new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:
new text end

	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin Subd. 9. new text end

new text begin Independent School District No. 239, Rushford-Peterson. new text end

new text begin For school
district flood enrollment impact aid as a result of the floods of August 2007:
new text end

158,000

.....

2010

new text begin The base appropriation for later fiscal years is zero.
new text end

new text begin The district must provide to the commissioner of education documentation of
the additional pupil transportation costs and the number of pupils in average daily
membership lost as a result of the flood.
new text end

new text begin Subd. 10. new text end

new text begin Lancaster. new text end

new text begin For a grant to Independent School District No. 356, Lancaster,
to replace the loss of sparsity revenue:
new text end

	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin The base appropriation for later fiscal years is zero.
new text end

new text begin Subd. 11. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50:
new text end

	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2010 new text end
	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2011 new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington.
new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years.
new text end

Sec. 20. new text beginAPPROPRIATIONS; FEDERAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the fiscal stabilization account in the federal fund to the commissioner
of education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin General education offset. new text end

new text begin To offset the onetime general education revenue
reduction under section 18:
new text end

275,600,000

.....

2010

new text begin Any balance does not cancel but is available for obligation until September 30, 2011.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2008, section 6.74, is amended to read:

6.74 INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.

new text begin Subdivision 1. new text end

new text begin Information generally. new text end

The state auditor, or a designated agent, shall
collect annually from all city, county, and other local units of government, information as
to the assessment of property, collection of taxes, receipts from licenses and other sources,
the expenditure of public funds for all purposes, borrowing, debts, principal and interest
payments on debts, and such other information as may be needful. The data shall be
supplied upon forms prescribed by the state auditor, and all public officials so called upon
shall fill out properly and return promptly all forms so transmitted. The state auditor or
assistants, may examine local records in order to complete or verify the information.

new text begin Subd. 2. new text end

new text begin Examples of good government in procurement and shared services;
clearinghouse. new text end

new text begin The state auditor may seek funds from local units of government
and nongovernmental sources to establish an online clearinghouse of examples of
good government in procurement and shared services among political subdivisions. If
established, the clearinghouse shall be designed to allow political subdivisions to submit
examples of good government in procurement and shared services in a form prescribed
by the state auditor.
new text end

Sec. 2.

Minnesota Statutes 2008, section 120B.02, is amended to read:

120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous academic standards for
Minnesota's public school students. To that end, the commissioner shall adopt in rule
statewide academic standards. The commissioner shall not prescribe in rule or otherwise
the delivery system, classroom assessments, or form of instruction that school sites must
use. For purposes of this chapter, a school site is a separate facility, or a separate program
within a facility that a local school board recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and
schools;

(2) any state action regarding the rule must evidence consideration of school district
autonomy; and

(3) the Department of Education, with the assistance of school districts, must make
available information about all state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is appropriate, comprehensive, and
readily understandable.

(c) When fully implemented, the requirements for high school graduation in
Minnesota must require students to satisfactorily complete, as determined by the school
district, the course credit requirements under section 120B.024 andnew text begin all state academic
standards or local academic standards where state standards do not apply andnew text end:

(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
basic skills test requirements; and

(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).

(d) The commissioner shall periodically review and report on the state's assessment
process.

(e) School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2012, and applies to
students entering the 9th grade in the 2012-2013 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply,
as determined by the school district. Public elementary and middle schools must offer
deleted text begin at least threedeleted text end and require at least two of the following four arts areas: dance; music;
theater; and visual arts. Public high schoolsnew text begin, consistent with section 120B.024, paragraph
(a), clause (5),new text end must offer deleted text beginat least threedeleted text end and require at least one of the following five arts
areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school studentsdeleted text begin, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate. An
individualized education plan team that makes this determination must establish alternative
standardsdeleted text endnew text begin with appropriate alternate achievement standards based on these academic
standards for students with individualized education plans described under federal lawnew text end.

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 4.

Minnesota Statutes 2008, section 120B.022, subdivision 1, is amended to read:

Subdivision 1.

Elective standards.

(a) A district must establish its own standards in
the following subject areas:

(1) vocational and technical education; and

(2) world languages.

A school district must offer courses in all elective subject areas.

(b) World languages teachers and other school staff should develop and implement
world languages programs that acknowledge and reinforce the language proficiency and
cultural awareness that non-English language speakers already possess, and encourage
students' proficiency in multiple world languages. Programs under this paragraph must
encompass indigenous American Indian languages and cultures, among other world
languages and cultures. The department shall consult with postsecondary institutions in
developing related professional development opportunities.

new text begin (c) Any Minnesota public, charter, or nonpublic school may award Minnesota
World Language Proficiency Certificates or Minnesota World Language Proficiency High
Achievement Certificates, consistent with this subdivision.
new text end

new text begin The Minnesota World Language Proficiency Certificate recognizes students who
demonstrate listening, speaking, reading, and writing language skills at the American
Council on the Teaching of Foreign Languages' Intermediate-Low level on a valid and
reliable assessment tool. For languages listed as Category 3 by the United States Foreign
Service Institute or Category 4 by the United States Defense Language Institute, the
standard is Intermediate-Low for listening and speaking and Novice-High for reading
and writing.
new text end

new text begin The Minnesota World Language Proficiency High Achievement Certificate
recognizes students who demonstrate listening, speaking, reading, and writing language
skills at the American Council on the Teaching of Foreign Languages' Pre-Advanced level
for K-12 learners on a valid and reliable assessment tool. For languages listed as Category
3 by the United States Foreign Service Institute or Category 4 by the United States
Defense Language Institute, the standard is Pre-Advanced for listening and speaking and
Intermediate-Mid for reading and writing.
new text end

Sec. 5.

Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to read:

Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. The commissioner must
implement a review of the academic standards and related benchmarks in mathematics
beginning in the 2015-2016 school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the deleted text begin2010-2011deleted text endnew text begin
2011-2012new text end school year. The commissioner must implement a review of the academic
standards and related benchmarks in arts beginning in the deleted text begin2016-2017deleted text endnew text begin 2017-2018new text end school
year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the deleted text begin2011-2012deleted text endnew text begin
2012-2013new text end school year. Under the revised standards, students scheduled to graduate in the
deleted text begin 2014-2015deleted text endnew text begin 2015-2016new text end school year or later must satisfactorily complete a chemistry or
physics credit. The commissioner must implement a review of the academic standards and
related benchmarks in science beginning in the deleted text begin2017-2018deleted text endnew text begin 2018-2019new text end school year.

(e) The commissioner in the deleted text begin2009-2010deleted text endnew text begin 2010-2011new text end school year must revise and
align the state's academic standards and high school graduation requirements in language
arts to require that students satisfactorily complete the revised language arts standards
beginning in the deleted text begin2012-2013deleted text endnew text begin 2013-2014new text end school year. The commissioner must implement
a review of the academic standards and related benchmarks in language arts beginning
in the deleted text begin2018-2019deleted text endnew text begin 2019-2020new text end school year.

(f) The commissioner in the deleted text begin2010-2011deleted text endnew text begin 2011-2012new text end school year must revise and
align the state's academic standards and high school graduation requirements in social
studies to require that students satisfactorily complete the revised social studies standards
beginning in the deleted text begin2013-2014deleted text endnew text begin 2014-2015new text end school year. The commissioner must implement
a review of the academic standards and related benchmarks in social studies beginning
in the deleted text begin2019-2020deleted text endnew text begin 2020-2021new text end school year.

(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, physical education, world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, physical education, world
languages, and career and technical education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:

Subd. 5.

Report.

(a) By October 1 of each year, the school board shall use standard
statewide reporting procedures the commissioner develops and adopt a reportnew text begin, consistent
with section 120B.36, subdivision 1,new text end that includes the following:

(1) student achievement goals for meeting state academic standards;

(2) results of local assessment data, and any additional test data;

(3) the annual school district improvement plans including staff development goals
under section 122A.60;

(4) information about district and learning site progress in realizing previously
adopted improvement plans; and

(5) the amount and type of revenue attributed to each education site as defined
in section 123B.04.

(b) The school board shall publish the report in the local newspaper with the largest
circulation in the district, by mail, or by electronic means such as the district Web site. If
electronic means are used, school districts must publish notice of the report in a periodical
of general circulation in the district. School districts must make copies of the report
available to the public on request. deleted text beginThe board shall make a copy of the report available to
the public for inspection. The board shall send a copy of the report to the commissioner
of education by October 15 of each year.
deleted text end

(c) deleted text beginThe title of the report shall contain the name and number of the school district and
read "Annual Report on Curriculum, Instruction, and Student Achievement."deleted text end The report
must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term
expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the
committee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 7.

Minnesota Statutes 2008, section 120B.13, is amended to read:

120B.13 ADVANCED PLACEMENT deleted text beginANDdeleted text endnew text begin,new text end INTERNATIONAL
BACCALAUREATEnew text begin, AND CONCURRENT ENROLLMENTnew text end PROGRAMS.

Subdivision 1.

Program structure; training programs for teachers.

(a) The
advanced placement deleted text beginanddeleted text endnew text begin,new text end international baccalaureatenew text begin, and concurrent enrollmentnew text end programs
are well-established academic programs for mature, academically directed high school
students. These programs, in addition to providing academic rigor, offer sound curricular
design, accountability, comprehensive external assessment, feedback to students and
teachers, and the opportunity for high school students to compete academically on a
global level. Advanced placement deleted text beginanddeleted text endnew text begin,new text end international baccalaureatenew text begin, and concurrent
enrollmentnew text end programs allow students to leave high school with the academic skills
and self-confidence to succeed in college and beyond. The advanced placement deleted text beginanddeleted text endnew text begin,new text end
international baccalaureatenew text begin, and concurrent enrollmentnew text end programs help provide Minnesota
students with world-class educational opportunity.

(b) Critical to schools' educational success is ongoing deleted text beginadvanced
placement/international baccalaureate-approved teacherdeleted text end trainingnew text begin for teachers instructing
students in the advanced placement, international baccalaureate, and concurrent enrollment
programsnew text end. A secondary teacher assigned by a district to teach an advanced placement or
international baccalaureate course or other interested educator may participate in a training
program offered by The College Board or International Baccalaureate North America, Inc.
new text begin A secondary teacher assigned by a district to teach a concurrent enrollment course, or other
interested educator, may participate in a training program offered by the eligible public
postsecondary institution with which the district has entered into an agreement according
to section 124D.09, subdivision 3, paragraph (a). new text endThe state may pay a portion of the tuition,
room, board, and out-of-state travel costs a teacher or other interested educator incurs
in participating in a training program. The commissioner shall determine application
procedures and deadlines, select teachers and other interested educators to participate in
the training program, and determine the payment process and amount of the subsidy.
The procedures determined by the commissioner shall, to the extent possible, ensure
that advanced placement deleted text beginanddeleted text endnew text begin,new text end international baccalaureatenew text begin, and concurrent enrollmentnew text end
courses become available in all parts of the state and that a variety of course offerings are
available in school districts. This subdivision does not prevent teacher or other interested
educator participation in training programs offered by The College Board or International
Baccalaureate North America, Inc., when tuition is paid by a source other than the state.

new text begin (c) The commissioner may award state-funded competitive grants designed to create
advanced placement summer training institutes for secondary teachers. Two-year grants,
beginning and ending on October 1, may be awarded to Minnesota institutions of higher
education that comply with the training requirements outlined by the College Board. The
commissioner shall determine award criteria and the selection process.
new text end

Subd. 2.

Support programs.

The commissioner shall provide support programs
during the school year for teachers who attended the training programs and teachers
experienced in teaching advanced placement deleted text beginordeleted text endnew text begin,new text end international baccalaureatenew text begin, or concurrent
enrollmentnew text end courses. The support programs shall provide teachers with opportunities to
share instructional ideas with other teachers. The state may pay the costs of participating
in the support programs, including substitute teachers, if necessary, and program affiliation
costs.

Subd. 3.

Subsidy for examination fees.

The state may pay all or part of the fee for
advanced placement or international baccalaureate examinations. The commissioner shall
pay all examination fees for all public and nonpublic students of low-income families, as
defined by the commissioner, and to the limit of the available appropriation, shall also pay
a portion or all of the examination fees for other public and nonpublic students sitting for
an advanced placement examination, international baccalaureate examination, or both.
The commissioner shall determine procedures for state payments of fees.

Subd. 3a.

College credit.

The colleges and universities of the Minnesota State
Colleges and Universities system must award, and the University of Minnesota and private
postsecondary institutions are encouraged to award, college credit to high school students
who receive a score of three or higher on an advanced placement or four or higher on the
international baccalaureate program examination.

Subd. 4.

Information.

The commissioner shall submit the following information to
the education committees of the legislature each year by February 1:

(1) the number of pupils enrolled in advanced placement deleted text beginanddeleted text endnew text begin,new text end international
baccalaureatenew text begin, and concurrent enrollmentnew text end courses in each school district;

(2) the number of teachers in each district attending training programs offered by the
college board or International Baccalaureate North America, Inc.;

(3) the number of teachers in each district participating in support programs;

(4) recent trends in the field of advanced placement deleted text beginanddeleted text endnew text begin,new text end international baccalaureatenew text begin,
and concurrent enrollmentnew text end programs;

(5) expenditures for each category in this section; and

(6) other recommendations for the state program.

Sec. 8.

Minnesota Statutes 2008, section 120B.132, is amended to read:

120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
PLACEMENT deleted text beginANDdeleted text endnew text begin,new text end INTERNATIONAL BACCALAUREATEnew text begin, AND
CONCURRENT ENROLLMENTnew text end PROGRAMS.

Subdivision 1.

Establishment; eligibility.

A program is established to raise
kindergarten through grade 12 academic achievement through increased student
participation in preadvanced placement, advanced placement, deleted text beginanddeleted text end international
baccalaureatenew text begin, and concurrent enrollmentnew text end programs, consistent with section 120B.13.
Schools and charter schools eligible to participate under this section:

(1) must have a three-year plan approved by the local school board to establish a new
international baccalaureate program leading to international baccalaureate authorization,
expand an existing program that leads to international baccalaureate authorization, or
expand an existing authorized international baccalaureate program; or

(2) must have a three-year plan approved by the local school board to create a new or
expand an existing program to implement the college board advanced placement courses
and exams or preadvanced placement initiative; deleted text beginanddeleted text endnew text begin ornew text end

new text begin (3) must have a three-year plan approved by the local school board to create a new
or expand an existing concurrent enrollment program; and
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end must propose to further raise students' academic achievement by:

(i) increasing the availability of and all students' access to advanced placement deleted text beginordeleted text endnew text begin,new text end
international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs;

(ii) expanding the breadth of advanced placement deleted text beginordeleted text endnew text begin,new text end international baccalaureatenew text begin, or
concurrent enrollmentnew text end courses or programs that are available to students;

(iii) increasing the number and the diversity of the students who participate in
advanced placement deleted text beginordeleted text endnew text begin,new text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses
or programs and succeed;

(iv) providing low-income and other disadvantaged students with increased access
to advanced placement deleted text beginordeleted text endnew text begin,new text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses
and programs; or

(v) increasing the number of high school students, including low-income and other
disadvantaged students, who receive college credit by successfully completing advanced
placement deleted text beginordeleted text endnew text begin,new text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs
and achieving satisfactory scores on related exams.

Subd. 2.

Application and review process; funding priority.

(a) Charter schools
and school districts in which eligible schools under subdivision 1 are located may apply to
the commissioner, in the form and manner the commissioner determines, for competitive
funding to further raise students' academic achievement. The application must detail the
specific efforts the applicant intends to undertake in further raising students' academic
achievement, consistent with subdivision 1, and a proposed budget detailing the district or
charter school's current and proposed expenditures for advanced placement, preadvanced
placement, deleted text beginanddeleted text end international baccalaureatenew text begin, and concurrent enrollmentnew text end courses and
programs. The proposed budget must demonstrate that the applicant's efforts will support
implementation of advanced placement, preadvanced placement, deleted text beginanddeleted text end international
baccalaureatenew text begin, and concurrent enrollmentnew text end courses and programs. Expenditures for
administration must not exceed five percent of the proposed budget. The commissioner
may require an applicant to provide additional information.

(b) When reviewing applications, the commissioner must determine whether
the applicant satisfied all the requirements in this subdivision and subdivision 1.
The commissioner may give funding priority to an otherwise qualified applicant that
demonstrates:

(1) a focus on developing or expanding preadvanced placement, advanced placement,
deleted text begin ordeleted text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs or increasing
students' participation in, access to, or success with the courses or programs, including the
participation, access, or success of low-income and other disadvantaged students;

(2) a compelling need for access to preadvanced placement, advanced placement, deleted text beginordeleted text end
international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs;

(3) an effective ability to actively involve local business and community
organizations in student activities that are integral to preadvanced placement, advanced
placement, deleted text beginordeleted text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs;

(4) access to additional public or nonpublic funds or in-kind contributions that are
available for preadvanced placement, advanced placement, deleted text beginordeleted text end international baccalaureatenew text begin,
or concurrent enrollmentnew text end courses or programs; or

(5) an intent to implement activities that target low-income and other disadvantaged
students.

Subd. 3.

Funding; permissible funding uses.

(a) The commissioner shall award
grants to applicant school districts and charter schools that meet the requirements of
subdivisions 1 and 2. The commissioner must award grants on an equitable geographical
basis to the extent feasible and consistent with this section. Grant awards must not exceed
the lesser of:

(1) $85 times the number of pupils enrolled at the participating sites on October
1 of the previous fiscal year; or

(2) the approved supplemental expenditures based on the budget submitted under
subdivision 2. For charter schools in their first year of operation, the maximum funding
award must be calculated using the number of pupils enrolled on October 1 of the current
fiscal year. The commissioner may adjust the maximum funding award computed using
prior year data for changes in enrollment attributable to school closings, school openings,
grade level reconfigurations, or school district reorganizations between the prior fiscal
year and the current fiscal year.

(b) School districts and charter schools that submit an application and receive
funding under this section must use the funding, consistent with the application, to:

(1) provide teacher training and instruction to more effectively serve students,
including low-income and other disadvantaged students, who participate in preadvanced
placement, advanced placement, deleted text beginordeleted text end international baccalaureatenew text begin, or concurrent enrollmentnew text end
courses or programs;

(2) further develop preadvanced placement, advanced placement, deleted text beginordeleted text end international
baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs;

(3) improve the transition between grade levels to better prepare students, including
low-income and other disadvantaged students, for succeeding in preadvanced placement,
advanced placement, deleted text beginordeleted text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or
programs;

(4) purchase books and supplies;

(5) pay course or program fees;

(6) increase students' participation in and success with preadvanced placement,
advanced placement, deleted text beginordeleted text end international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or
programs;

(7) expand students' access to preadvanced placement, advanced placement, deleted text beginordeleted text end
international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs through online
learning;

(8) hire appropriately licensed personnel to teach additional advanced placement deleted text beginordeleted text end
international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs; or

(9) engage in other activity directly related to expanding students' access to,
participation in, and success with preadvanced placement, advanced placement, deleted text beginordeleted text end
international baccalaureatenew text begin, or concurrent enrollmentnew text end courses or programs, including
low-income and other disadvantaged students.

Subd. 4.

Annual reports.

(a) Each school district and charter school that receives
a grant under this section annually must collect demographic and other student data to
demonstrate and measure the extent to which the district or charter school raised students'
academic achievement under this program and must report the data to the commissioner
in the form and manner the commissioner determines. The commissioner annually by
February 15 must make summary data about this program available to the education
policy and finance committees of the legislature.

(b) Each school district and charter school that receives a grant under this section
annually must report to the commissioner, consistent with the Uniform Financial
Accounting and Reporting Standards, its actual expenditures for advanced placement,
preadvanced placement, deleted text beginanddeleted text end international baccalaureatenew text begin, and concurrent enrollmentnew text end
courses and programs. The report must demonstrate that the school district or charter
school has maintained its effort from other sources for advanced placement, preadvanced
placement, deleted text beginanddeleted text end international baccalaureatenew text begin, and concurrent enrollmentnew text end courses and
programs compared with the previous fiscal year, and the district or charter school has
expended all grant funds, consistent with its approved budget.

new text begin Subd. 5. new text end

new text begin Accreditation of concurrent enrollment programs. new text end

new text begin (a) To establish a
uniform standard by which concurrent enrollment courses and professional development
activities may be measured, postsecondary institutions are encouraged to apply for
accreditation by the National Alliance of Concurrent Enrollment Partnership.
new text end

new text begin (b) Beginning in fiscal year 2011, districts offering a concurrent enrollment program
according to an agreement under section 124D.09, subdivision 10, are only eligible for aid
under this section and section 120B.13, if the college or university concurrent enrollment
courses offered by the district are accredited by the National Alliance of Concurrent
Enrollment Partnership, in the process of being accredited, or are shown by clear evidence
to be of comparable standard to accredited courses.
new text end

Sec. 9.

new text begin [120B.299] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Growth. new text end

new text begin "Growth" compares the difference in a student's achievement
score at two or more distinct points in time.
new text end

new text begin Subd. 3. new text end

new text begin Value added. new text end

new text begin "Value added" is the amount of achievement a student
demonstrates above an established baseline. The difference between the student's score
and the baseline defines value added.
new text end

new text begin Subd. 4. new text end

new text begin Value-added growth. new text end

new text begin "Value-added growth" is based on a student's
growth score. In a value-added growth system, the student's first test is the baseline, and
the difference between the student's first and next test scores within a defined period is the
measure of value added. Value-added growth models use student-level data to measure
what portion of a student's growth can be explained by inputs related to the educational
environment.
new text end

new text begin Subd. 5. new text end

new text begin Adequate yearly progress. new text end

new text begin A school or district makes "adequate yearly
progress" if, for every student subgroup under the federal 2001 No Child Left Behind
Act in the school or district, its proficiency index or other approved adjustments for
performance, based on statewide assessment scores, meets or exceeds federal expectations.
To make adequate yearly progress, the school or district also must satisfy applicable
federal requirements related to student attendance, graduation, and test participation rates.
new text end

new text begin Subd. 6. new text end

new text begin State growth target. new text end

new text begin (a) "State growth target" is the average year-two
assessment scores for students with similar year-one assessment scores.
new text end

new text begin (b) The state growth targets for each grade and subject are benchmarked as follows
until the assessment scale changes:
new text end

new text begin (1) beginning in the 2008-2009 school year, the state growth target for grades 3 to 8
is benchmarked to 2006-2007 and 2007-2008 school year data;
new text end

new text begin (2) beginning in the 2008-2009 school year the state growth target for grade 10 is
benchmarked to 2005-2006 and 2006-2007 school year data;
new text end

new text begin (3) for the 2008-2009 school year, the state growth target for grade 11 is
benchmarked to 2005-2006 school year data; and
new text end

new text begin (4) beginning in the 2009-2010 school year, the state growth target for grade 11 is
benchmarked to 2005-2006 and 2006-2007 school year data.
new text end

new text begin (c) Each time before the assessment scale changes, a stakeholder group that includes
assessment and evaluation directors and staff and researchers must recommend a new
state growth target that the commissioner must consider when revising standards under
section 120B.023, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Low growth. new text end

new text begin "Low growth" is an assessment score one-half standard
deviation below the state growth target.
new text end

new text begin Subd. 8. new text end

new text begin Medium growth. new text end

new text begin "Medium growth" is an assessment score within one-half
standard deviation above or below the state growth target.
new text end

new text begin Subd. 9. new text end

new text begin High growth. new text end

new text begin "High growth" is an assessment score one-half standard
deviation or more above the state growth target.
new text end

new text begin Subd. 10. new text end

new text begin Proficiency. new text end

new text begin "Proficiency" for purposes of reporting growth on school
performance report cards under section 120B.36, subdivision 1, means those students
who, in the previous school year, scored at or above "meets standards" on the statewide
assessments under section 120B.30. Each year, school performance report cards must
separately display: (1) the numbers and percentages of students who achieved low growth,
medium growth, and high growth and achieved proficiency in the previous school year;
and (2) the numbers and percentages of students who achieved low growth, medium
growth, and high growth and did not achieve proficiency in the previous school year.
new text end

new text begin Subd. 11. new text end

new text begin Growth and progress toward proficiency. new text end

new text begin The categories of low
growth, medium growth, and high growth shall be used to indicate both (1) growth and (2)
progress toward grade-level proficiency that is consistent with subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2008, section 120B.30, is amended to read:

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed deleted text beginfrom anddeleted text endnew text begin to be computer-adaptive
reading and mathematics assessments for general education students that arenew text end aligned with
the state's required academic standards under section 120B.021new text begin, include both multiple
choice and constructed response questions,new text end and new text beginare new text endadministered annually to all students
in grades 3 through 8 deleted text beginand at the high school leveldeleted text end. deleted text beginAdeleted text end State-developed deleted text begintestdeleted text end new text beginhigh school
tests aligned with the state's required academic standards under section 120B.021 and
administered to all high school students new text endin a subject other than writingdeleted text begin, developed after
the 2002-2003 school year,deleted text end must include both deleted text beginmachine-scoreabledeleted text endnew text begin multiple choicenew text end and
constructed response questions. The commissioner shall establish one or more months
during which schools shall administer the tests to students each school year. new text beginSchools
that the commissioner identifies for stand-alone field testing or other national sampling
must participate as directed. Superintendents or charter school directors may appeal in
writing to the commissioner for an exemption from a field test based on undue hardship.
The commissioner's decision regarding the appeal is final. new text endFor students enrolled in
grade 8 before the 2005-2006 school year, deleted text beginonlydeleted text end Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 deleted text beginin 1997 and
thereafter, asdeleted text end based on the first uniform test deleted text beginadministration ofdeleted text endnew text begin administered innew text end February
1998.new text begin Students who have not successfully passed a Minnesota basic skills test by the end
of the 2011-2012 school year must pass the graduation-required assessments for diploma
under paragraph (b).
new text end

(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

(c) new text beginStudents enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (b) are eligible to receive a high school diploma
with a passing state notation if they:
new text end

new text begin (1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;
new text end

new text begin (2) participate in district-prescribed academic remediation in mathematics; and
new text end

new text begin (3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. A school board issuing a
student a high school diploma in any school year from the 2009-2010 school year through
the 2013-2014 school year must record on the student's high school transcript the student's
score as the total number of test items and the number of test items the student answered
correctly on the mathematics graduation-required assessment for diploma under this
subdivision.
new text end

new text begin In addition, the school board granting the students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.
new text end

new text begin (d) new text endThe 3rd through 8th grade new text begincomputer-adaptive assessments new text endand high school deleted text beginleveldeleted text end
test results shall be available to districts for diagnostic purposes affecting student learning
and district instruction and curriculum, and for establishing educational accountability.
The commissioner must disseminate to the public the new text begincomputer-adaptive assessments and
high school new text endtest results upon receiving those results.

deleted text begin (d) Statedeleted text endnew text begin (e) The 3rd through 8th grade computer-adaptive assessments and
high schoolnew text end tests must be deleted text beginconstructed anddeleted text end aligned with state academic standards. Thenew text begin
commissioner shall determine thenew text end testing process and the order of administration deleted text beginshall be
determined by the commissionerdeleted text end. The statewide results shall be aggregated at the site and
district level, consistent with subdivision 1a.

deleted text begin (e)deleted text endnew text begin (f)new text end In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodationsdeleted text begin,deleted text endnew text begin ornew text end alternate
assessmentsdeleted text begin, or exemptions consistent with applicable federal law, only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2deleted text end;

(2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

Subd. 1a.

Statewide and local assessments; results.

(a) new text beginFor purposes of this
section, the following definitions have the meanings given them.
new text end

new text begin (1) "Computer-adaptive assessments" means fully adaptive assessments or partially
adaptive assessments.
new text end

new text begin (2) "Fully adaptive assessments" include test items that are on-grade level and items
that may be above or below a student's grade level.
new text end

new text begin (3) "Partially adaptive assessments" include two portions of test items, where one
portion is limited to on-grade level test items and a second portion includes test items that
are on-grade level or above or below a student's grade level.
new text end

new text begin (4) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.
new text end

new text begin (5) "Above-grade level" test items contain subject area content that is above the grade
level of the student taking the assessment and are considered aligned with state academic
standards to the extent they are aligned with content represented in state academic
standards above the grade level of the student taking the assessment. Notwithstanding
the student's grade level, administering above-grade level test items to a student does not
violate the requirement that state assessments must be aligned with state standards.
new text end

new text begin (6) "Below-grade level" test items contain subject area content that is below
the grade level of the student taking the test and are considered aligned with state
academic standards to the extent they are aligned with content represented in state
academic standards below the student's current grade level. Notwithstanding the student's
grade level, administering below-grade level test items to a student does not violate the
requirement that state assessments must be aligned with state standards.
new text end

new text begin (b) The commissioner must use fully adaptive assessments to the extent no net loss
of federal and state funds occurs as a result of using these assessments. If a net loss of
federal and state funds were to occur under this subdivision, then the commissioner must
use partially adaptive assessments to meet existing federal educational accountability
requirements.
new text end

new text begin (c) For purposes of conforming with existing federal educational accountability
requirements, new text endthe commissioner must developnew text begin and implement computer-adaptivenew text end readingdeleted text begin,deleted text endnew text begin
andnew text end mathematicsdeleted text begin, and sciencedeleted text end assessments new text beginfor grades 3 through 8, state-developed
high school reading and mathematics tests new text endaligned with state academic standardsnew text begin, and
science assessments under clause (2)new text end that districts and sites must use to monitor student
growth toward achieving those standards. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts. The commissioner must require:

(1) annual new text begincomputer-adaptive new text endreading and mathematics assessments in grades 3
through 8new text begin,new text end and deleted text beginat the high school level for the 2005-2006 school year and laterdeleted text endnew text begin high school
reading and mathematics testsnew text end; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through deleted text begin9deleted text end new text begin8 new text endspan, and a life sciences assessment in the grades deleted text begin10deleted text end new text begin9 new text endthrough 12
span deleted text beginfor the 2007-2008 school year and laterdeleted text endnew text begin, and the commissioner must not require
students to achieve a passing score on high school science assessments as a condition of
receiving a high school diplomanew text end.

new text begin The commissioner must ensure that for annual computer-adaptive assessments:
new text end

new text begin (i) individual student performance data and achievement and summary reports are
available within three school days of when students take an assessment;
new text end

new text begin (ii) growth information is available for each student from the student's first
assessment to each proximate assessment using a constant measurement scale;
new text end

new text begin (iii) parents, teachers, and school administrators are able to use elementary and
middle school student performance data to project student achievement in high school; and
new text end

new text begin (iv) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for purposes of improving
student instruction and indicating the specific skills and concepts that should be introduced
and developed for students at given score levels, organized by strands within subject areas,
and aligned to state academic standards.
new text end

new text begin When contracting for computer-adaptive assessments under this section, the
weighting criteria the commissioner uses to evaluate contract proposals must give
preference to vendors prepared to provide statewide computer-adaptive assessments and
options for locally selected, locally financed, and locally implemented assessments that are
independently aligned to state standards and used to inform curriculum and instruction.
new text end

deleted text begin (b)deleted text endnew text begin (d)new text end The commissioner must ensure that all statewide tests administered to
elementary and secondary students measure students' academic knowledge and skills and
not students' values, attitudes, and beliefs.

deleted text begin (c)deleted text endnew text begin (e)new text end Reporting of assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) includedeleted text begin, by no later than the 2008-2009 school year,deleted text end a value-added deleted text begincomponent
that is in addition to a measure for student achievement growth over timedeleted text endnew text begin growth indicator
of student achievement under section 120B.35, subdivision 3, paragraph (b)new text end; and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

deleted text begin (d)deleted text endnew text begin (f)new text end Consistent with applicable federal law and subdivision 1, paragraph (d),
clause (1), the commissioner must include appropriate, technically sound accommodations
or alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

deleted text begin (e)deleted text endnew text begin (g)new text end A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
deleted text begin progress in achieving thedeleted text endnew text begin proficiency in the context of the state's grade levelnew text end academic
standards. If a state assessment is not available, a school, school district, and charter
school must determine locally if a student has met the required academic standards. A
school, school district, or charter school may use a student's performance on a statewide
assessment as one of multiple criteria to determine grade promotion or retention. A
school, school district, or charter school may use a high school student's performance on a
statewide assessment as a percentage of the student's final grade in a course, or place a
student's assessment score on the student's transcript.

new text begin (h) For each procurement cycle for computer-adaptive assessments, the
commissioner must report to the K-12 education policy and finance committees of the
legislature on the costs of implementing computer-adaptive assessments and demonstrate
that these assessments both represent the greatest value to the state and local school
districts and minimize the need for redundant assessments.
new text end

Subd. 2.

Department of Education assistance.

The Department of Education
shall contract for professional and technical services according to competitive bidding
procedures under chapter 16C for purposes of this section.

Subd. 3.

Reporting.

The commissioner shall report test data publicly and to
stakeholders, including the performance achievement levels developed from students'
unweighted test scores in each tested subject and a listing of demographic factors that
strongly correlate with student performance. The commissioner shall also report data that
compares performance results among school sites, school districts, Minnesota and other
states, and Minnesota and other nations. The commissioner shall disseminate to schools
and school districts a more comprehensive report containing testing information that
meets local needs for evaluating instruction and curriculum.

Subd. 4.

Access to tests.

The commissioner must adopt and publish a policy
to provide public and parental access for review of basic skills tests, Minnesota
Comprehensive Assessments, or any other such statewide test and assessment. Upon
receiving a written request, the commissioner must make available to parents or guardians
a copy of their student's actual responses to the test questions deleted text beginto be reviewed by the
parentdeleted text endnew text begin for their reviewnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
Subdivision 1, paragraph (c), applies to the 2009-2010 through 2013-2014 school
years only. Notwithstanding any other law to the contrary, requirements related to the
mathematics graduation-required assessment for diploma under this section are repealed
June 30, 2014, and the commissioner of education must not implement any alternative to
the mathematics graduation-required assessment for diploma without specific legislative
authority. Requirements for using computer-adaptive mathematics assessments for grades
3 through 8 apply in the 2010-2011 school year and later and requirements for using
computer-adaptive reading assessments for grades 3 through 8 apply in the 2012-2013
school year and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 120B.31, is amended to read:

120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
ADJUSTMENTS.

Subdivision 1.

Educational accountability and public reporting.

Consistent
with the deleted text beginprocessdeleted text endnew text begin directionnew text end to adopt deleted text begina results-oriented graduation ruledeleted text endnew text begin statewide academic
standardsnew text end under section 120B.02, the department, in consultation with education and
other system stakeholders, must establish a coordinated and comprehensive system of
educational accountability and public reporting that promotes deleted text beginhigherdeleted text endnew text begin greaternew text end academic
achievementnew text begin, preparation for higher academic education, preparation for the world of
work, citizenship under sections 120B.021, subdivision 1, clause (4), and 120B.024,
paragraph (a), clause (4), and the artsnew text end.

Subd. 2.

Statewide testing.

Each school year, all school districts shall give a
uniform statewide test to students at specified grades to provide information on the status,
needs and performance of Minnesota students.

Subd. 3.

Educational accountability.

(a) The Independent Office of Educational
Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
section 28, subdivision 2, is established, and shall be funded through the Board of Regents
of the University of Minnesota. The office shall advise the education committees of the
legislature and the commissioner of education, at least on a biennial basis, onnew text begin:
new text end

new text begin (1)new text end the degree to which the statewide educational accountability and reporting system
includes a comprehensive assessment framework that measures school accountability
for students achieving the goals described in the state's deleted text beginresults-orienteddeleted text endnew text begin high schoolnew text end
graduation rulenew text begin;
new text end

new text begin (2) the completeness, integrity, and use of the information provided by the statewide
educational accountability and reporting system in the context of enabling legislators and
other stakeholders to make fully informed education policy decisions consistent with the
best and most current academic research available; and
new text end

new text begin (3) the impact the statewide educational accountability and reporting system has on
prekindergarten through grade 12 education policy, effectiveness, resource distribution,
and structurenew text end.

new text begin (b) new text endThe office shall determine and annually report to the legislature whether and
how effectively:

(1) the statewide system of educational accountability deleted text beginutilizesdeleted text endnew text begin usesnew text end multiple
indicators to provide valid and reliable comparative and contextual data on students,
schools, districts, and the state, and if not, recommend ways to improve the accountability
reporting system;

(2) deleted text beginthe commissioner makes statistical adjustments when reporting student data over
time, consistent with clause (4);
deleted text end

deleted text begin (3) the commissioner uses indicators of student achievement growthdeleted text endnew text begin a value-added
growth indicator of student achievementnew text end over time deleted text beginand a value-added assessment model
thatdeleted text end estimates the effects of the school and school district on student achievement deleted text beginto
measuredeleted text endnew text begin and measuresnew text end school performance, consistent with section deleted text begin120B.36, subdivision
1deleted text endnew text begin 120B.35, subdivision 3, paragraph (b)new text end;

deleted text begin (4) the commissioner makesdeleted text endnew text begin (3)new text end data new text beginare new text endavailable on students who do not pass one
or more of the state's required GRAD tests and do not receive a diploma as a consequence,
and deleted text begincategorizesdeleted text end these data new text beginare categorized new text endaccording to gender, race, eligibility for free
or reduced lunch, and English language proficiency; and

deleted text begin (5) the commissioner fulfillsdeleted text endnew text begin (4)new text end the requirements under section 127A.095,
subdivision 2new text begin, are metnew text end.

deleted text begin (b)deleted text endnew text begin (c)new text end When the office reviews the statewide educational accountability and
reporting system, it shall also consider:

(1) the objectivity and neutrality of the state's educational accountability system; and

(2) the impact of a testing program on school curriculum and student learning.

Subd. 4.

Statistical adjustmentsnew text begin; student performance datanew text end.

In developing
policies and assessment processes to hold schools and districts accountable for high
levels of academic standards under section 120B.021, the commissioner shall aggregate
student data over time to report student performancenew text begin and growthnew text end levels measured at the
new text begin school, new text endschool district, deleted text beginregional, ordeleted text endnew text begin andnew text end statewide level. When collecting and reporting
the new text beginperformance new text enddata, the commissioner shall: (1) acknowledge the impact of significant
demographic factors such as residential instability, the number of single parent families,
parents' level of education, and parents' income level on school outcomes; and (2)
organize and report the data so that state and local policy makers can understand the
educational implications of changes in districts' demographic profiles over time. Any
report the commissioner disseminates containing summary data on student performance
must integrate student performance and the demographic factors that strongly correlate
with that performance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2008, section 120B.35, is amended to read:

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text beginPROGRESSdeleted text endnew text begin
GROWTHnew text end.

Subdivision 1.

deleted text beginAdequate yearly progress of schools and studentsdeleted text endnew text begin School and
student indicators of growth and achievementnew text end.

The commissioner must develop and
implement a system for measuring and reporting academic achievement and individual
student deleted text beginprogressdeleted text endnew text begin growthnew text end, consistent with the statewide educational accountability and
reporting system. The new text beginsystem new text endcomponents deleted text beginof the systemdeleted text end must measurenew text begin and separately
reportnew text end the adequate yearly progress of schools and new text beginthe growth of new text endindividual students:
students' current achievement in schools under subdivision 2; and individual students'
educational deleted text beginprogressdeleted text endnew text begin growthnew text end over time under subdivision 3. The system also must include
statewide measures of student academic deleted text beginachievementdeleted text endnew text begin growthnew text end that identify schools with
high levels of deleted text beginachievementdeleted text endnew text begin growthnew text end, and also schools with low levels of deleted text beginachievementdeleted text endnew text begin
growthnew text end that need improvement. When determining a school's effect, the data must
include both statewide measures of student achievement and, to the extent annual tests
are administered, indicators of achievement growth that take into account a student's
prior achievement. Indicators of achievement and prior achievement must be based on
highly reliable statewide or districtwide assessments. Indicators that take into account a
student's prior achievement must not be used to disregard a school's low achievement or to
exclude a school from a program to improve low achievement levels. deleted text beginThe commissioner
by January 15, 2002, must submit a plan for integrating these components to the chairs of
the legislative committees having policy and budgetary responsibilities for elementary
and secondary education.
deleted text end

Subd. 2.

new text beginFederal expectations for new text endstudent academic achievement.

(a) Each school
year, a school district must determine if the student achievement levels at each school site
meet deleted text beginstate and localdeleted text endnew text begin federalnew text end expectations. If student achievement levels at a school site do
not meet deleted text beginstate and localdeleted text endnew text begin federalnew text end expectations and the site has not made adequate yearly
progress for two consecutive school years, beginning with the 2001-2002 school year,
the district must work with the school site to adopt a plan to raise student achievement
levels to meet deleted text beginstate and localdeleted text endnew text begin federalnew text end expectations. The commissioner of education shall
establish student academic achievement levelsnew text begin to comply with this paragraphnew text end.

(b) School sites identified as not meeting new text beginfederal new text endexpectations must develop
continuous improvement plans in order to meet deleted text beginstate and localdeleted text endnew text begin federalnew text end expectations for
student academic achievement. The department, at a district's request, must assist the
district and the school site in developing a plan to improve student achievement. The plan
must include parental involvement components.

(1) deleted text beginprovide assistance todeleted text endnew text begin assistnew text end school sites and districts identified as not meeting
new text begin federal new text endexpectations; and

(2) provide technical assistance to schools that integrate student deleted text beginprogressdeleted text endnew text begin
achievementnew text end measures deleted text beginunder subdivision 3 indeleted text endnew text begin intonew text end the school continuous improvement
plan.

(d) The commissioner shall establish and maintain a continuous improvement Web
site designed to make data on every school and district available to parents, teachers,
administrators, community members, and the general public.

Subd. 3.

deleted text beginStudent progress assessmentdeleted text endnew text begin State growth target; other state measuresnew text end.

(a) The new text beginstate's new text endeducational assessment system deleted text begincomponentdeleted text end measuring individual students'
educational deleted text beginprogress must bedeleted text endnew text begin growth isnew text end baseddeleted text begin, to the extent annual tests are administered,deleted text end
on indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments.

(b) The commissionernew text begin, in consultation with a stakeholder group that includes
assessment and evaluation directors and staff and researchersnew text end must deleted text beginidentify effective
models for measuring individual student progress that enable a school district or school
site to perform gains-based analysis, including evaluating the effects of the teacher,
school, and school district on student achievement over time. At least one model must
be a "value-added" assessment model that reliably estimates those effects for classroom
settings where a single teacher teaches multiple subjects to the same group of students, for
team teaching arrangements, and for other teaching circumstances.deleted text endnew text begin implement a model
that uses a value-added growth indicator and includes criteria for identifying schools
and school districts that demonstrate medium and high growth under section 120B.299,
subdivisions 8 and 9, and may recommend other value-added measures under section
120B.299, subdivision 3. The model may be used to advance educators' professional
development and replicate programs that succeed in meeting students' diverse learning
needs. Data on individual teachers generated under the model are personnel data under
section 13.43. The model must allow users to:
new text end

new text begin (1) report student growth consistent with this paragraph; and
new text end

new text begin (2) for all student categories, report and compare aggregated and disaggregated state
growth data using the nine student categories identified under the federal 2001 No Child
Left Behind Act and two student gender categories of male and female, respectively,
following appropriate reporting practices to protect nonpublic student data.
new text end

new text begin The commissioner must report separate measures of student growth and proficiency,
consistent with this paragraph.
new text end

(c) deleted text beginIf a district has an accountability plan that includes gains-based analysis or
"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
those measures in determining whether the district or school site meets expectations. The
department must coordinate with the district in evaluating school sites and continuous
improvement plans, consistent with best practices.deleted text endnew text begin When reporting student performance
under section 120B.36, subdivision 1, the commissioner annually, beginning July 1,
2011, must report two core measures indicating the extent to which current high school
graduates are being prepared for postsecondary academic and career opportunities:
new text end

new text begin (1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with
the core academic subjects required for admission to Minnesota's public colleges and
universities as determined by the Office of Higher Education under chapter 136A; and
new text end

new text begin (2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options including concurrent enrollment, other rigorous courses of study under section
120B.021, subdivision 1a, or industry certification courses or programs.
new text end

new text begin When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively following appropriate reporting practices to
protect nonpublic student data.
new text end

new text begin (d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2013, must report summary data on school
safety and students' engagement and connection at school. The summary data under this
paragraph are separate from and must not be used for any purpose related to measuring
or evaluating the performance of classroom teachers. The commissioner, in consultation
with qualified experts on student engagement and connection and classroom teachers,
must identify highly reliable variables that generate summary data under this paragraph.
The summary data may be used at school, district, and state levels only. Any data on
individuals received, collected, or created that are used to generate the summary data
under this paragraph are nonpublic data under section 13.02, subdivision 9.
new text end

Subd. 4.

Improving schools.

Consistent with the requirements of this section,
new text begin beginning June 20, 2012, new text endthe commissioner of education must deleted text beginestablish a second
achievement benchmark to identify improving schools. The commissioner must
recommend todeleted text endnew text begin annually report to the public andnew text end the legislature deleted text beginby February 15, 2002,
indicators in addition to the achievement benchmark for identifying improving schools,
including an indicator requiring a school to demonstrate ongoing successful use of best
teaching practicesdeleted text endnew text begin the organizational and curricular practices implemented in those schools
that demonstrate medium and high growth compared to the state growth targetnew text end.

Subd. 5.

Improving graduation rates for students with emotional or behavioral
disorders.

(a) A district must develop strategies in conjunction with parents of students
with emotional or behavioral disorders and the county board responsible for implementing
sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
school, when the district has a drop-out rate for students with an emotional or behavioral
disorder in grades 9 through 12 exceeding 25 percent.

(b) A district must develop a plan in conjunction with parents of students with
emotional or behavioral disorders and the local mental health authority to increase the
graduation rates of students with emotional or behavioral disorders. A district with a
drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
12 that is in the top 25 percent of all districts shall submit a plan for review and oversight
to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 3, paragraph (b), applies to students in the
2008-2009 school year and later. Subdivision 3, paragraph (c), applies to students in the
2010-2011 school year and later. Subdivision 3, paragraph (d), applies to data that are
collected in the 2010-2011 school year and later and reported annually beginning July 1,
2013, consistent with advice the commissioner receives from recognized and qualified
experts on student engagement and connection and classroom teachers. Subdivision 4
applies in the 2011-2012 school year and later.
new text end

Sec. 13.

Minnesota Statutes 2008, section 120B.36, is amended to read:

120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

Subdivision 1.

School performance report cards.

(a) The commissioner shall deleted text beginuse
objective criteria based on levels of student performance todeleted text end report deleted text beginat leastdeleted text end student academic
performancenew text begin under section 120B.35, subdivision 2, the percentages of students showing
low, medium, and high growth under section 120B.35, subdivision 3, paragraph (b)new text end,
school safetynew text begin and student engagement and connection under section 120B.35, subdivision
3, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph
(c)new text end, two separate student-to-teacher ratios that clearly indicate the definition of teacher
consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios,
deleted text begin anddeleted text end staff characteristicsnew text begin excluding salariesnew text end, deleted text beginwith a value-added component added no later
than the 2008-2009 school yeardeleted text endnew text begin student enrollment demographics, district mobility, and
extracurricular activitiesnew text end. The reportnew text begin alsonew text end must indicate a school's adequate yearly progress
status, and must not set any designations applicable to high- and low-performing schools
due solely to adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

(c) The commissioner must make available deleted text beginthe firstdeleted text end performance report cards by
deleted text begin November 2003, and duringdeleted text end the beginning of each school year deleted text beginthereafterdeleted text end.

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance report deleted text begincardsdeleted text endnew text begin cardnew text end data are nonpublic data under section
13.02, subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

Subd. 2.

Adequate yearly progress new text beginand other new text enddata.

All data the department
receives, collects, or creates deleted text beginfor purposes of determiningdeleted text endnew text begin to determinenew text end adequate yearly
progress deleted text begindesignationsdeleted text endnew text begin statusnew text end under Public Law 107-110, section 1116, new text beginset state growth
targets, and determine student growth new text endare nonpublic data under section 13.02, subdivision
9, until not later than ten days after the appeal procedure described in subdivision 1,
paragraph (d), concludes. Districts must provide parents sufficiently detailed summary
data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
department shall annually post new text beginfederal new text endadequate yearly progress data new text beginand state student
growth data new text endto its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:

Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, and 4 to the superintendent of the district in which the person resides by October 1 of
deleted text begin each school yeardeleted text endnew text begin the first year of their home schooling and the 7th grade yearnew text end. The school
report must be prepared on forms developed jointly by the commissioner of health and the
commissioner of education and be distributed to the local districts by the commissioner
of health. The school report must state the number of persons attending the school, the
number of persons who have not been immunized according to subdivision 1 or 2, and
the number of persons who received an exemption under subdivision 3, clause (c) or (d).
The school report must be filed with the commissioner of education within 60 days of the
commencement of each new school term. Upon request, a district must be given a 60-day
extension for filing the school report. The commissioner of education shall forward the
report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

Sec. 15.

Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:

Subd. 2.

Eligibility; board composition.

Except for the representatives of higher
education and the public, to be eligible for appointment to the Board of Teaching a person
must be a teacher currently teaching in a Minnesota school and fully licensed for the
position held and have at least five years teaching experience in Minnesota, including the
two years immediately preceding nomination and appointment. Each nominee, other than
a public nominee, must be selected on the basis of professional experience and knowledge
of teacher education, accreditation, and licensure. The board must be composed of:

(1) six teachers who are currently teaching in a Minnesota schoolnew text begin or who were
teaching at the time of the appointmentnew text end, at least four of whom must be teaching in a
public school;

(2) one higher education representative, who must be a faculty member preparing
teachers;

(3) one school administrator; and

(4) three members of the public, two of whom must be present or former members
of school boards.

Sec. 16.

Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:

Subd. 3.

Vacant position.

new text beginWith the exception of a teacher who retires from teaching
during the course of completing a board term, new text endthe position of a member who leaves
Minnesota or whose employment status changes to a category different from that from
which appointed is deemed vacant.

Sec. 17.

Minnesota Statutes 2008, section 122A.18, subdivision 4, is amended to read:

Subd. 4.

Expiration and renewal.

(a) Each license the Department of Education
issues through its licensing section must bear the date of issue. Licenses must expire
and be renewed according to the respective rules the Board of Teaching, the Board
of School Administrators, or the commissioner of education adopts. Requirements for
renewing a license must include showing satisfactory evidence of successful teaching or
administrative experience for at least one school year during the period covered by the
license in grades or subjects for which the license is valid or completing such additional
preparation as the Board of Teaching prescribes. The Board of School Administrators
shall establish requirements for renewing the licenses of supervisory personnel except
athletic coaches. The State Board of Teaching shall establish requirements for renewing
the licenses of athletic coaches.

new text begin (b) Relicensure applicants, as a condition of relicensure, must present to their
local continuing education and relicensure committee or other local relicensure
committee evidence of work that demonstrates professional reflection and growth in best
teaching practices. The applicant must include a reflective statement of professional
accomplishment and the applicant's own assessment of professional growth showing
evidence of:
new text end

new text begin (1) support for student learning;
new text end

new text begin (2) use of best practices techniques and their applications to student learning;
new text end

new text begin (3) collaborative work with colleagues that includes examples of collegiality such as
attested-to committee work, collaborative staff development programs, and professional
learning community work; or
new text end

new text begin (4) continual professional development that may include job-embedded or other
ongoing formal professional learning during the relicensure period.
new text end

new text begin The Board of Teaching must ensure that its teacher relicensing requirements also include
this paragraph.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end The Board of Teaching shall offer alternative continuing relicensure options
for teachers who are accepted into and complete the National Board for Professional
Teaching Standards certification process, and offer additional continuing relicensure
options for teachers who earn National Board for Professional Teaching Standards
certification. Continuing relicensure requirements for teachers who do not maintain
National Board for Professional Teaching Standards certification are those the board
prescribesnew text begin, consistent with this sectionnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to licensees seeking relicensure beginning July 1, 2012.
new text end

Sec. 18.

Minnesota Statutes 2008, section 122A.40, subdivision 6, is amended to read:

Subd. 6.

deleted text beginPeer reviewdeleted text endnew text begin Mentoringnew text end for probationary teachers.

A school board and
an exclusive representative of the teachers in the district must develop a probationary
teacher peer review process through joint agreement.new text begin The process may include having
trained observers serve as mentors or coaches or having teachers participate in professional
learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 19.

Minnesota Statutes 2008, section 122A.40, subdivision 8, is amended to read:

Subd. 8.

Peer deleted text beginreviewdeleted text endnew text begin coachingnew text end for continuing contract teachers.

A school board
and an exclusive representative of the teachers in the district shall develop a peer review
process for continuing contract teachers through joint agreement.new text begin The process may
include having trained observers serve as peer coaches or having teachers participate in
professional learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 20.

Minnesota Statutes 2008, section 122A.41, subdivision 3, is amended to read:

Subd. 3.

deleted text beginPeer reviewdeleted text endnew text begin Mentoringnew text end for probationary teachers.

A board and an
exclusive representative of the teachers in the district must develop a probationary teacher
peer review process through joint agreement.new text begin The process may include having trained
observers serve as mentors or coaches or having teachers participate in professional
learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 21.

Minnesota Statutes 2008, section 122A.41, subdivision 5, is amended to read:

Subd. 5.

Peer deleted text beginreviewdeleted text endnew text begin coachingnew text end for continuing contract teachers.

A school
board and an exclusive representative of the teachers in the district must develop a peer
review process for nonprobationary teachers through joint agreement.new text begin The process may
include having trained observers serve as peer coaches or having teachers participate in
professional learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 22.

Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:

Subd. 2.

Plan components.

The educational improvement plan must be approved
by the school board and have at least these elements:

(1) assessment and evaluation tools to measure student performance and progress;

(2) performance goals and benchmarks for improvement;

(3) measures of student attendance and completion rates;

(4) a rigorousnew text begin research and practice-basednew text end professional development system,new text begin based
on national and state standards of effective teaching practice andnew text end consistent with section
122A.60, that is aligned with educational improvementdeleted text begin,deleted text endnew text begin andnew text end designed to achievenew text begin ongoing
and schoolwide progress and growth innew text end teaching deleted text beginquality improvement, and consistent with
clearly defined research-based standardsdeleted text endnew text begin practicenew text end;

(5) measures of student, family, and community involvement and satisfaction;

(6) a data system about students and their academic progress that provides parents
and the public with understandable information;

(7) a teacher induction and mentoring program for probationary teachers that
provides continuous learning and sustained teacher support; and

(8) substantial participation by the exclusive representative of the teachers in
developing the plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to plans developed in the 2009-2010 school year and later.
new text end

Sec. 23.

Minnesota Statutes 2008, section 122A.414, subdivision 2, is amended to read:

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this
program, a school district, intermediate school district, school site, or charter school must
have an educational improvement plan under section 122A.413 and an alternative teacher
professional pay system agreement under paragraph (b). A charter school participant also
must comply with subdivision 2a.

(b) The alternative teacher professional pay system agreement must:

(1) describe how teachers can achieve career advancement and additional
compensation;

(2) describe how the school district, intermediate school district, school site, or
charter school will provide teachers with career advancement options that allow teachers
to retain primary roles in student instruction and facilitate site-focused professional
development that helps other teachers improve their skills;

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base at least 60 percent of any compensation increase on teacher
performance using:

(i) schoolwide student achievement gains under section 120B.35 or locally selected
standardized assessment outcomes, or both;

(ii) measures of student achievement; and

(iii) an objective evaluation programnew text begin and evidence of effective practicenew text end that deleted text beginincludesdeleted text endnew text begin
includenew text end:

(A) individual teacher evaluations aligned with the educational improvement plan
under section 122A.413 and the staff development plan under section 122A.60; and

(B) objective evaluations using multiple criteria conducted by a locally selected and
periodically trained evaluation team that understands teaching and learning new text beginincludingnew text endnew text begin
a professional framework outlined in teacher evaluation best practices, supported by
multiple criteria, and conducted in a professional and supportive environment; and
new text end

new text begin (c) reflection and growth in best teaching practices shown through support for
student learning, collaborative work with colleagues, or continual professional learning,
consistent with section 122A.18, subdivision 4, paragraph (b), clauses (1) to (3)new text end;

(4) provide integrated ongoing site-based professional development activities to
improve instructional skills and learning that are aligned with student needs under section
122A.413, consistent with the staff development plan under section 122A.60 and led
during the school day by trained teacher leaders such as master or mentor teachersnew text begin or
peer coachesnew text end;

(5) allow any teacher in a participating school district, intermediate school district,
school site, or charter school that implements an alternative pay system to participate in
that system without any quota or other limit; and

(6) encourage collaboration rather than competition among teachers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all alternative teacher professional pay system agreements entered into or
modified after that date.
new text end

Sec. 24.

Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to
read:

Subd. 2b.

Approval process.

(a) Consistent with the requirements of this section
and sections 122A.413 and 122A.415, the department must prepare and transmit to
interested school districts, intermediate school districts, school sites, and charter schools
a standard form for applying to participate in the alternative teacher professional pay
system. new text beginThe commissioner annually must establish three dates as deadlines by which
interested applicants must submit an application to the commissioner under this section.
new text endAn interested school district, intermediate school district, school site, or charter school
must submit to the commissioner a completed application executed by the district
superintendent and the exclusive bargaining representative of the teachers if the applicant
is a school district, intermediate school district, or school site, or executed by the charter
school board of directors if the applicant is a charter school. The application must include
the proposed alternative teacher professional pay system agreement under subdivision
2. The department must deleted text beginconvene adeleted text end review deleted text begincommittee that at least includes teachers
and administratorsdeleted text endnew text begin a completed applicationnew text end within 30 days of deleted text beginreceiving a completed
application todeleted text endnew text begin the most recent application deadline andnew text end recommend to the commissioner
whether to approve or disapprove the application. The commissioner must approve
applications on a first-come, first-served basis. The applicant's alternative teacher
professional pay system agreement must be legally binding on the applicant and the
collective bargaining representative before the applicant receives alternative compensation
revenue. The commissioner must approve or disapprove an application based on the
requirements under subdivisions 2 and 2a.

(b) If the commissioner disapproves an application, the commissioner must give the
applicant timely notice of the specific reasons in detail for disapproving the application.
The applicant may revise and resubmit its application and related documents to the
commissioner within 30 days of receiving notice of the commissioner's disapproval and
the commissioner must approve or disapprove the revised application, consistent with this
subdivision. Applications that are revised and then approved are considered submitted on
the date the applicant initially submitted the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all applications submitted after that date.
new text end

Sec. 25.

Minnesota Statutes 2008, section 122A.60, subdivision 2, is amended to read:

Subd. 2.

Contents of the plan.

The plan must include the staff development
outcomes under subdivision 3, the means to achieve the outcomes, and procedures for
evaluating progress at each school site toward meeting education outcomesdeleted text begin.deleted text endnew text begin, consistent
with relicensure requirements under section 122A.18, subdivision 2, paragraph (b). The
plan also must:
new text end

new text begin (1) support stable and productive professional communities achieved through
ongoing and schoolwide progress and growth in teaching practice;
new text end

new text begin (2) emphasize coaching, professional learning communities, classroom action
research, and other job-embedded models;
new text end

new text begin (3) maintain a strong subject matter focus premised on students' learning goals;
new text end

new text begin (4) ensure specialized preparation and learning about issues related to teaching
students with special needs and limited English proficiency; and
new text end

new text begin (5) reinforce national and state standards of effective teaching practice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 26.

Minnesota Statutes 2008, section 123A.05, is amended to read:

123A.05 deleted text beginAREA LEARNING CENTERdeleted text endnew text begin STATE-APPROVED ALTERNATIVE
PROGRAMnew text end ORGANIZATION.

Subdivision 1.

Governance.

new text begin(a) new text endA district may establish an area learning center
deleted text begin either by itself or in cooperation with other districtsdeleted text end,new text begin alternative learning program, or
contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d),
and 124D.69.
new text end

new text begin (b) An area learning center is encouraged to cooperate withnew text end a service cooperative, an
intermediate school district, a local education and employment transitions partnership,
public and private secondary and postsecondary institutions, public agencies, businesses,
and foundations. Except for a district located in a city of the first class, deleted text beginadeleted text endnew text begin an area
learningnew text end center new text beginmust be established in cooperation with other districts and new text endmust serve
the geographic area of at least two districts.new text begin An area learning center must provide
comprehensive educational services to enrolled secondary students throughout the year,
including a daytime school within a school or separate site for both high school and
middle school level students.
new text end

new text begin (c) An alternative learning program may serve the students of one or more districts,
may designate which grades are served, and may make program hours and a calendar
optional.
new text end

new text begin (d) A contract alternative is an alternative learning program operated by a private
organization that has contracted with a school district to provide educational services for
students under section 124D.68, subdivision 2.
new text end

Subd. 2.

Reserve revenue.

Each district that is a member of an area learning center
new text begin or alternative learning program new text endmust reserve revenue in an amount equal to the sum of (1)
at least 90 percent of the district average general education revenue per pupil unit minus
an amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2, times .0485, calculated without basic skills revenue and transportation
sparsity revenue, times the number of pupil units attending an area learning center new text beginor
alternative learning new text endprogram under this section, plus (2) the amount of basic skills revenue
generated by pupils attending the area learning centernew text begin or alternative learning programnew text end. The
amount of reserved revenue under this subdivision may only be spent on program costs
associated with the area learning centernew text begin or alternative learning programnew text end.

Subd. 3.

Access to services.

A deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end shall have
access to the district's regular education programs, special education programs, technology
facilities, and staff. It may contract with individuals or postsecondary institutions. It shall
seek the involvement of community education programs, postsecondary institutions,
interagency collaboratives, culturally based organizations, mutual assistance associations,
and other community resources, businesses, and other federal, state, and local public
agencies.

Subd. 4.

Nonresident pupils.

A pupil who does not reside in the district may
attend a deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end without consent of the school board of
the district of residence.

Sec. 27.

Minnesota Statutes 2008, section 123A.06, is amended to read:

123A.06 deleted text beginCENTERdeleted text endnew text begin STATE-APPROVED ALTERNATIVEnew text end PROGRAMS AND
SERVICES.

Subdivision 1.

Program focus.

(a) The programs and services of a deleted text begincenterdeleted text endnew text begin
state-approved alternative programnew text end must focus on academic and learning skills, applied
learning opportunities, trade and vocational skills, work-based learning opportunities,
work experience, youth service to the community, transition services, and English
language and literacy programs for children whose primary language is a language other
than English. Applied learning, work-based learning, and service learning may best be
developed in collaboration with a local education and transitions partnership, culturally
based organizations, mutual assistance associations, or other community resources.
In addition to offering programs, the deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end shall
coordinate the use of other available educational services, special education services,
social services, health services, and postsecondary institutions in the community and
services area.

(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school
district may provide an alternative education program for a student who is within the
compulsory attendance age under section 120A.20, and who is involved in severe or
repeated disciplinary action.

Subd. 2.

People to be served.

A deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end shall
provide programs for secondary pupils and adults. A center may also provide programs
and services for elementary and secondary pupils who are not attending the deleted text begincenterdeleted text endnew text begin
state-approved alternative programnew text end to assist them in being successful in school. A center
shall use research-based best practices for serving limited English proficient students and
their parents. An individual education plan team may identify a deleted text begincenterdeleted text endnew text begin state-approved
alternative programnew text end as an appropriate placement to the extent a deleted text begincenterdeleted text endnew text begin state-approved
alternative programnew text end can provide the student with the appropriate special education services
described in the student's plan. Pupils eligible to be served are those who qualify under
the graduation incentives program in section 124D.68, subdivision 2, those enrolled
under section 124D.02, subdivision 2, or those pupils who are eligible to receive special
education services under sections 125A.03 to 125A.24, and 125A.65.

Subd. 3.

Hours of instruction exemption.

Notwithstanding any law to the contrary,
the new text beginarea learning new text endcenter programs must be available throughout the entire year. deleted text beginA center
may petition the state board under Minnesota Rules, part 3500.1000, for exemption from
other rules.
deleted text end

Subd. 4.

Granting a diploma.

Upon successful completion of the new text beginarea learning
new text endcenter program, a pupil is entitled to receive a high school diploma. The pupil may elect
to receive a diploma from either the district of residence or the district in which the new text beginarea
learning new text endcenter is located.

Sec. 28.

Minnesota Statutes 2008, section 123A.08, is amended to read:

123A.08 deleted text beginCENTERdeleted text endnew text begin STATE-APPROVED ALTERNATIVE PROGRAMnew text end
FUNDING.

Subdivision 1.

Outside sources for resources and services.

A deleted text begincenterdeleted text endnew text begin
state-approved alternative programnew text end may accept:

(1) resources and services from postsecondary institutions serving deleted text begincenterdeleted text endnew text begin
state-approved alternative programnew text end pupils;

(2) resources from deleted text beginJob Training Partnershipdeleted text endnew text begin Workforce Investmentnew text end Act programs,
including funding for jobs skills training for various groups and the percentage reserved
for education;

(3) resources from the Department of Human Services and county welfare funding;

(4) resources from a local education and employment transitions partnership; or

(5) private resources, foundation grants, gifts, corporate contributions, and other
grants.

Subd. 2.

General education aid.

Payment of general education aid for nonresident
pupils enrolled in deleted text beginthe centerdeleted text endnew text begin area learning centers and alternative learning programsnew text end must
be made according to section 127A.47, subdivision 7.

Subd. 3.

Special education revenue.

Payment of special education revenue for
nonresident pupils enrolled in the deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end must be made
according to section deleted text begin125A.15deleted text endnew text begin 127A.47, subdivision 7new text end.

Sec. 29.

Minnesota Statutes 2008, section 123B.03, subdivision 1, is amended to read:

Subdivision 1.

Background check required.

(a) A school hiring authority shall
request a criminal history background check from the superintendent of the Bureau of
Criminal Apprehension on all individuals who are offered employment in a school and
on all individuals, except enrolled student volunteers, who are offered the opportunity to
provide athletic coaching services or other extracurricular academic coaching services
to a school, regardless of whether any compensation is paid. In order for an individual
to be eligible for employment or to provide the services, the individual must provide an
executed criminal history consent form and a money order or check payable to either the
Bureau of Criminal Apprehension or the school hiring authority, at the discretion of the
school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal
Apprehension and the school district of conducting the criminal history background
check. A school hiring authority deciding to receive payment may, at its discretion, accept
payment in the form of a negotiable instrument other than a money order or check and
shall pay the superintendent of the Bureau of Criminal Apprehension directly to conduct
the background check. The superintendent of the Bureau of Criminal Apprehension shall
conduct the background check by retrieving criminal history data maintained in the
criminal justice information system computers. A school hiring authority, at its discretion,
may decide not to request a criminal history background check on an individual who holds
an initial entrance license issued by the State Board of Teaching or the commissioner of
education within the 12 months preceding an offer of employment.

(b) A school hiring authority may use the results of a criminal background check
conducted at the request of another school hiring authority if:

(1) the results of the criminal background check are on file with the other school
hiring authority or otherwise accessible;

(2) the other school hiring authority conducted a criminal background check within
the previous 12 months;

(3) the individual who is the subject of the criminal background check executes a
written consent form giving a school hiring authority access to the results of the check; and

(4) there is no reason to believe that the individual has committed an act subsequent
to the check that would disqualify the individual for employment.

(c) A school hiring authority may, at its discretion, request a criminal history
background check from the superintendent of the Bureau of Criminal Apprehension on
any individual who seeks to enter a school or its grounds for the purpose of serving as a
school volunteer or working as an independent contractor or student employee. In order
for an individual to enter a school or its grounds under this paragraph when the school
hiring authority decides to request a criminal history background check on the individual,
the individual first must provide an executed criminal history consent form and a money
order, check, or other negotiable instrument payable to the school district in an amount
equal to the actual cost to the Bureau of Criminal Apprehension and the school district
of conducting the criminal history background check. deleted text beginNotwithstanding section 299C.62,
subdivision 1, the cost of the criminal history background check under this paragraph is
the responsibility of the individualdeleted text endnew text begin A school hiring authority may decide to pay the cost of
conducting a background check under this paragraph, in which case the individual who is
the subject of the background check need not pay for the background checknew text end.

(d) For all nonstate residents who are offered employment in a school, a school
hiring authority shall request a criminal history background check on such individuals
from the superintendent of the Bureau of Criminal Apprehension and from the government
agency performing the same function in the resident state or, if no government entity
performs the same function in the resident state, from the Federal Bureau of Investigation.
Such individuals must provide an executed criminal history consent form and a money
order, check, or other negotiable instrument payable to the school hiring authority in an
amount equal to the actual cost to the government agencies and the school district of
conducting the criminal history background check. Notwithstanding section 299C.62,
subdivision 1, the cost of the criminal history background check under this paragraph is
the responsibility of the individual.

(e) At the beginning of each school year or when a student enrolls, a school hiring
authority must notify parents and guardians about the school hiring authority's policy
requiring a criminal history background check on employees and other individuals who
provide services to the school, and identify those positions subject to a background check
and the extent of the hiring authority's discretion in requiring a background check. The
school hiring authority may include the notice in the student handbook, a school policy
guide, or other similar communication. Nothing in this paragraph affects a school hiring
authority's ability to request a criminal history background check on an individual under
paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 30.

Minnesota Statutes 2008, section 123B.03, subdivision 1a, is amended to read:

Subd. 1a.

Investigation of disciplinary actions taken against prospective
teachers.

new text begin(a) new text endAt the time a school board or other hiring authority conducts the criminal
history background check required under subdivision 1 on an individual offered
employment as a teacher, the school board or other hiring authority must contact the
Board of Teaching to determine whether the board has taken disciplinary action against
the teacher based on deleted text begina board determination thatdeleted text end sexual misconduct or attempted sexual
misconduct deleted text beginoccurreddeleted text end between the teacher and a studentnew text begin or other misconduct resulting in
board disciplinary actionnew text end. If disciplinary action has been taken based on deleted text beginthis type ofdeleted text end
misconduct, the school board or other hiring authority must obtain access to data that are
public under section 13.41, subdivision 5, that relate to the substance of the disciplinary
action. In addition, the school board or other hiring authority must require the individual
to provide information in the employment application regarding all current and previous
disciplinary actions in Minnesota and other states taken against the individual's teaching
license as a result of sexual misconduct or attempted sexual misconduct with a student
new text begin or other misconduct new text endand indicate to the applicant that intentionally submitting false or
incomplete information is a ground for dismissal.

new text begin (b) For purposes of this subdivision, "disciplinary action" does not include an action
based on court-ordered child support or maintenance payment arrearages under section
214.101 or delinquent state taxes under section 270C.72.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 1, 2009.
new text end

Sec. 31.

new text begin [123B.045] DISTRICT-CREATED SITE-GOVERNED SCHOOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin (a) A school board may approve site-governed schools
under this section by requesting site-governing school proposals. The request for
proposals must include what types of schools or education innovations the board intends
to create. A current site may submit a proposal to create a different model for the site if
60 percent or more of the teachers at the site support the proposal. A group of licensed
district professionals from one or multiple district sites may submit a proposal. The
group submitting the proposal must include parents or other community members in the
development of the proposal. A proposal may request approval for a model of a school not
included in the request for proposal of the board.
new text end

new text begin (b) The school board and the applicable bargaining unit representing district
employees must enter into memoranda of understanding specifying how applicable
sections of current contracts will enable the provisions of subdivision 2, clauses (7) and
(8), to be implemented.
new text end

new text begin (c) Within 60 days of receipt of the application, the school board shall determine
whether to approve, deny, or return the application to the applicants for further information
or development.
new text end

new text begin (d) Upon approval of the proposal, an agreement between the district and the site
council shall be developed identifying the powers and duties delegated to the site and
outlining the details of the proposal including the provisions of subdivisions 2, 3, and
5. Any powers or duties not specifically delegated to the school site in the agreement
remains with the school board.
new text end

new text begin Subd. 2. new text end

new text begin Roles and responsibilities of site-governed schools. new text end

new text begin (a) Site-governed
schools approved by the school board have the following autonomy and responsibilities at
the discretion of the site:
new text end

new text begin (1) to create the site-governing council of the school. The council shall include
teachers, administrators, parents, students if appropriate, community members, and other
representatives of the community as determined by the site-governing council. Teachers
may comprise a majority of the site-governing council at the option of a majority of
the teachers at the site. The number of members on the site-governing council and the
composition shall be included in the proposal approved by the school board;
new text end

new text begin (2) to determine the leadership model for the site including: selecting a principal,
operating as a teacher professional practices model with school leadership functions
performed by one or more teachers or administrators at the school or other model
determined by the site;
new text end

new text begin (3) to determine the budget for the site and the allocation and expenditure of the
revenue based on provisions of subdivision 3;
new text end

new text begin (4) to determine the learning model and organization of the school consistent with
the application approved by the school board;
new text end

new text begin (5) to select and develop its curriculum and determine formative and summative
assessment practices;
new text end

new text begin (6) to set policies for the site including student promotion, attendance, discipline,
graduation requirements which may exceed the school board standards, and other such
rules as approved by the school board consistent with the mission, goals, and learning
program of the school site;
new text end

new text begin (7) to determine the length of the school day and year and employee work rules
covered by the terms and conditions of the employment contract;
new text end

new text begin (8) to select teachers and other staff consistent with current law and collective
bargaining agreements and memoranda of understanding provided for in subdivision 1,
paragraph (b). At least 70 percent of the teachers must be selected by the site prior to final
approval of the agreement. Prior to requesting the district to employ staff not currently
employed by the district, the site must first select current district staff including those on
requested and unrequested leave as provided for in sections 122A.40 and 122A.41. The
school board shall be the legal employer of all staff at the site and all teachers and other
staff members of the applicable bargaining units. Teachers and other employees may be
required to sign an individual work agreement with the site-governing council committing
themselves to the mission and learning program of the school and the requirements of
the site-governing council; and
new text end

new text begin (9) to fulfill other provisions as agreed to by the district and site-governing council.
new text end

new text begin (b) If a self-governed school created under this section is supervised by a principal,
that principal must be licensed, consistent with section 123B.147, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Revenue to self-governed school. new text end

new text begin (a) The revenue that shall be allocated
by the site includes the general education revenue generated by the students at the site from
state, local, and private sources, referendum revenue, federal revenue from the Elementary
and Secondary Education Act, Individuals with Disabilities Education Act, Carl Perkins
Act, and other federal programs as agreed to by the school board and site council.
new text end

new text begin (b) The district may retain an administrative fee for managing the federal
programs, private revenues, and general administrative functions including school board,
superintendent, district legal counsel, finance, accountability and self-governed school
contract oversight, facilities maintenance, districtwide special education programs, and
other such services as agreed to by the site and school board. The administrative fee
shall be included in the agreement.
new text end

new text begin (c) As part of the agreement, the district may provide specific services for the site
and may specify the amount to be paid for each service and retain the revenues for that
amount. The formula or procedures for determining the amount of revenue to be allocated
to the site each year shall be consistent with this subdivision and incorporated in the site
budget annually following a timeline and process that is included in the agreement with
the school board. The site is responsible for allocating revenue for all staff at the site and
for the other provisions of the agreement with the district board.
new text end

new text begin (d) All unspent revenue shall be carried over to following years for the sole use
of the site.
new text end

new text begin Subd. 4. new text end

new text begin Exemption from statutes and rules. new text end

new text begin Except as outlined in this section,
site-governed schools established under this section are exempt from and subject to the
same laws and rules as are chartered schools under section 124D.10, except that the
schools shall be subject to chapters 13, 13D, and 179A, and sections 122A.40, 122A.41,
122A.50, and 122A.51.
new text end

new text begin Subd. 5. new text end

new text begin Performance standards. new text end

new text begin (a) The school board and the site council shall
include in the agreement performance standards and expectations that shall include at
least the following:
new text end

new text begin (1) student achievement targets on multiple indicators including either a growth
model or value-added growth model;
new text end

new text begin (2) the criteria and process to be followed if it is determined that the site failed
to comply with district oversight and accountability requirements as outlined in the
agreement; and
new text end

new text begin (3) other performance provisions as agreed to.
new text end

new text begin (b) All agreements shall be filed with the commissioner. The initial agreement shall
be for up to three years, shall be reviewed annually, and may be renewed by the district
board for additional terms of up to five years based on the performance of the school.
new text end

new text begin Subd. 6. new text end

new text begin Board termination of self-governed school authority. new text end

new text begin (a) The district
board may terminate the agreement for one or more of the following reasons:
new text end

new text begin (1) failure of the site to meet the provisions specified in the agreement in subdivision
5;
new text end

new text begin (2) violations of law; or
new text end

new text begin (3) other good cause shown.
new text end

new text begin (b) Site-governed schools that are terminated or not renewed for reasons other than
cause may request to convert to charter school status as provided for in section 124D.10
and, if chartered by the board, shall become the owner of all materials, supplies, and
equipment purchased during the period the school was a site-governed school.
new text end

Sec. 32.

Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner;new text begin and
new text end

(5) deleted text beginby January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on
the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
expenditures that the district requires to attain the targeted student passage rate; and
deleted text end

deleted text begin (6)deleted text end perform other duties prescribed by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2009-2010 school year and later.
new text end

Sec. 33.

Minnesota Statutes 2008, section 123B.51, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Temporary closing. new text end

new text begin A school district that proposes to temporarily close a
schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
for three or fewer years is not subject to subdivision 5 if the school board holds a public
meeting and allows public comment on the schoolhouse's future.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2008, section 124D.095, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given them.

(a) "Online learning" is an interactive course or program that delivers instruction
from a teacher to a student by computer; is combined with other traditional delivery
methods that include frequent student assessment and may include actual teacher contact
time; and meets or exceeds state academic standards.

(b) "Online learning provider" is a school district, an intermediate school district, an
organization of two or more school districts operating under a joint powers agreement, or
a charter school located in Minnesota that provides online learning to students.

(c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
subdivision 4, in kindergarten through grade 12.

(d) "Online learning student" is a student enrolled in an online learning course or
program delivered by an online provider under paragraph (b).

(e) "Enrolling district" means the school district or charter school in which a student
is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.

(f) "Supplemental online learning" means an online course taken in place of a course
period during the regular school day at a local district school.

(g) "Full-time online provider" means an enrolling school authorized by the
department to deliver comprehensive public education at any or all of the elementary,
middle, or high school levels.

new text begin (h) "Online course syllabus" is a written document that an online learning provider
makes available to the enrolling district using a format prescribed by the commissioner to
identify the state academic standards embedded in an online course, the course content
outline, required course assessments, expectations for actual teacher contact time and
other student-to-teacher communications, and academic support available to the online
learning student.
new text end

Sec. 35.

Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply for full-time enrollment in an approved online learning program under section
124D.03, 124D.08 or 124D.10deleted text begin, or for supplemental online learningdeleted text end. Notwithstanding
sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in new text beginsupplemental new text endonline
learning shall be as provided in this subdivision. A student age 17 or younger must
have the written consent of a parent or guardian to apply. No school district or charter
school may prohibit a student from applying to enroll in online learning. In order that a
student may enroll in online learning, the student and the student's parents must submit an
application to the online learning provider and identify the reason for enrolling in online
learning. The online learning provider that accepts a student under this section must within
ten days notify the student and the enrolling district in writing if the enrolling district is
not the online learning provider. The student and family must notify the online learning
provider of their intent to enroll in online learning within ten days of acceptance, at which
time the student and parent must sign a statement of assurance that they have reviewed the
online course or program and understand the expectations of online learning enrollment.
The online learning provider must notify the enrolling district of the student's deleted text beginenrollmentdeleted text endnew text begin
application to enrollnew text end in online learning in writing on a form provided by the department.

(b) Supplemental online learning notification to the enrolling district upon student
deleted text begin enrollment indeleted text endnew text begin application tonew text end the online learning deleted text beginprogramdeleted text endnew text begin providernew text end will include the
courses or program, credits to be awarded, new text beginand new text endthe start date of online enrollmentdeleted text begin, and
confirmation that the courses will meet the student's graduation plandeleted text end. new text beginAn online learning
provider must provide the enrolling district with an online course syllabus. Within 15 days
after the online learning provider makes the supplemental online course syllabus available
to the enrolling district, the enrolling district must notify the online provider whether or
not the student, parent or guardian, and enrolling district agree that the course meets
the enrolling district's graduation requirements. new text endA student may enroll in supplemental
online learning courses up to the midpoint of the enrolling district's term. The enrolling
district may waive this requirement for special circumstances and upon acceptance by the
online provider. new text beginAn online learning course or program that meets or exceeds a graduation
standard or grade progression requirements at the enrolling district as demonstrated on
the online provider's syllabus must be considered to meet the corresponding graduation
requirements of the student in the enrolling district. If the enrolling district decides that
the course does not meet its graduation requirements, then:
new text end

new text begin (1) the district shall provide a written explanation of its decision upon request by the
student, parent or guardian, or online provider;
new text end

new text begin (2) the district shall allow the online provider the opportunity to respond in writing
to the district's written explanation of its decision for the purpose of describing how the
course may meet the district's graduation requirement; and
new text end

new text begin (3) the student, parent or guardian, or online provider may request that the
Department of Education review the district's decision to determine whether it is consistent
with this section.
new text end

(c) An online learning provider must notify the commissioner that it is delivering
online learning and report the number of online learning students it is accepting and the
online learning courses and programs it is delivering.

(d) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications.

(e) An enrolling district may reduce an online learning student's regular classroom
instructional membership in proportion to the student's membership in online learning
courses.

new text begin (f) The online provider must report or provide access to information on an individual
student's progress and accumulated credit to the student, parent or guardian, and enrolling
district in a manner specified by the commissioner unless another manner is agreed upon
by the enrolling district and the online provider and submitted to the commissioner. The
enrolling district must designate a contact person to assist in facilitating and monitoring
the student's progress and accumulated credit towards graduation.
new text end

Sec. 36.

Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. deleted text beginAn online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district.deleted text end The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the course
schedule of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll in supplemental online learning courses during a single school year to a
maximum of 50 percent of the student's full schedule of courses per term. A student may
exceed the supplemental online learning registration limit if the enrolling district grants
permission for supplemental online learning enrollment above the limit, or if an agreement
is made between the enrolling district and the online learning provider for instructional
services;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7new text begin, unless the enrolling district
is a full-time online providernew text end. A teacher with a Minnesota license must assemble and
deliver instruction to enrolled students receiving online learning from an enrolling district.
The delivery of instruction occurs when the student interacts with the computer or the
teacher and receives ongoing assistance and assessment of learning. The instruction may
include curriculum developed by persons other than a teacher with a Minnesota license.

(e) deleted text beginAndeleted text end new text beginBoth full-time and supplemental new text endonline learning deleted text beginprovider that is not the
enrolling district isdeleted text endnew text begin providers arenew text end subject to the reporting requirements and review criteria
under subdivision 7. A teacher with a Minnesota license must assemble and deliver
instruction to online learning students. The delivery of instruction occurs when the student
interacts with the computer or the teacher and receives ongoing assistance and assessment
of learning. The instruction may include curriculum developed by persons other than a
teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher
providing online learning instruction must not instruct more than 40 students in any one
online learning course or program.

(f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.

Sec. 37.

Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:

Subd. 7.

Department of Education.

(a) The department must review and
certify online learning providers. The online learning courses and programs must be
rigorous, aligned with state academic standards, and contribute to grade progression
in a single subject. deleted text beginOnline learning providers must demonstrate to the commissioner
that online learning courses have equivalent standards or instruction, curriculum, and
assessment requirements as other courses offered to enrolled students. The online
learning provider must also demonstrate expectations for actual teacher contact time
or other student-to-teacher communicationdeleted text endnew text begin The online provider must provide a written
statement that: (1) all courses meet state academic standards; and (2) the online learning
curriculum, instruction, and assessment, expectations for actual teacher-contact time or
other student-to-teacher communication, and academic support meet nationally recognized
professional standards and are demonstrated as such in a syllabus provided according to
the commissioner's requirementsnew text end. Once an online learning provider is approved under
this paragraph, all of its online learning course offerings are eligible for payment under
this section unless a course is successfully challenged by an enrolling district or the
department under paragraph (b).

(b) An enrolling district may challenge the validity of a course offered by an online
learning provider. The department must review such challenges based on the certification
procedures under paragraph (a). The department may initiate its own review of the validity
of an online learning course offered by an online learning provider.

(c) The department may collect a fee not to exceed $250 for certifying online
learning providers or $50 per course for reviewing a challenge by an enrolling district.

(d) The department must develop, publish, and maintain a list of approved online
learning providers and online learning courses and programs that it has reviewed and
certified.

Sec. 38.

Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to
read:

Subd. 10.

Online Learning Advisory Council.

(a) An Online Learning Advisory
Council is established deleted text beginunder section deleted text begin15.059deleted text end, except thatdeleted text endnew text begin.new text end The term for each council
member shall be three years. The advisory council is composed of 12 members from
throughout the state who have demonstrated experience with or interest in online learning.
The members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to online learning and
provide input to the department in matters related, but not restricted, to:

(1) quality assurance;

(2) teacher qualifications;

(3) program approval;

(4) special education;

(5) attendance;

(6) program design and requirements; and

(7) fair and equal access to programs.

(b) The Online Learning Advisory Council under this subdivision expires June
30, deleted text begin2008deleted text endnew text begin 2013new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39.

Minnesota Statutes 2008, section 124D.10, is amended to read:

124D.10 CHARTER SCHOOLS.

Subdivision 1.

Purposes.

(a) The purpose of this section is to:

(1) improve pupil learningnew text begin and achievementnew text end;

(2) increase learning opportunities for pupils;

(3) encourage the use of different and innovative teaching methods;

(4) deleted text beginrequire the measurement ofdeleted text end new text beginmeasure new text endlearning outcomes deleted text beginand createdeleted text endnew text begin through the
creation and use ofnew text end different and innovative forms of measuring outcomes;

(5) establish new forms of accountability for schools; or

(6) create new professional opportunities for teachers, including the opportunity to
be responsible for the learning program at the school site.

(b) This section does not provide a means to keep open a school that otherwise
would be closed. Applicants in these circumstances bear the burden of proving that
conversion to a charter school fulfills a purpose specified in this subdivision, independent
of the school's closing.

Subd. 2.

Applicability.

This section applies only to charter schools formed and
operated under this section.

deleted text begin Subd. 2a. deleted text end

deleted text begin Charter School Advisory Council. deleted text end

deleted text begin(a) A Charter School Advisory
Council is established under section 15.059 except that the term for each council member
shall be three years. The advisory council is composed of seven members from throughout
the state who have demonstrated experience with or interest in charter schools. The
members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to charter schools
that the council deems necessary and shall:deleted text end

deleted text begin (1) encourage school boards to make full use of charter school opportunities;
deleted text end

deleted text begin (2) encourage the creation of innovative schools;
deleted text end

deleted text begin (3) provide leadership and support for charter school sponsors to increase the
innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
deleted text end

deleted text begin (4) serve an ombudsman function in facilitating the operations of new and existing
charter schools;
deleted text end

deleted text begin (5) promote timely financial management training for newly elected members of
a charter school board of directors and ongoing training for other members of a charter
school board of directors; and
deleted text end

deleted text begin (6) facilitate compliance with auditing and other reporting requirements. The
advisory council shall refer all its proposals to the commissioner who shall provide time
for reports from the council.
deleted text end

deleted text begin (b) The Charter School Advisory Council under this subdivision expires June 30,
2007.
deleted text end

Subd. 3.

deleted text beginSponsordeleted text endnew text begin Authorizernew text end.

(a)new text begin For purposes of this section, the terms defined in
this subdivision have the meanings given them.
new text end

new text begin "Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under paragraph (c) before that authorizer is able
to submit any affidavit to charter to a school.
new text end

new text begin "Application" under subdivision 4 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.
new text end

new text begin "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under subdivision 4 attesting to its review and
approval process before chartering a school.
new text end

new text begin (b) The following organizations may authorize one or more charter schools:
new text end

new text begin (1)new text end a school board; intermediate school district school board; education district
organized under sections 123A.15 to 123A.19;

new text begin (2) anew text end charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986new text begin, excluding a nonpublic sectarian or religious institution, any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose,new text end thatnew text begin:
new text end

new text begin (i)new text end is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundationsdeleted text begin,deleted text endnew text begin;
new text end

new text begin (ii) isnew text end registered with the attorney general's officedeleted text begin, anddeleted text endnew text begin;
new text end

new text begin (iii)new text end reports an end-of-year fund balance of at least $2,000,000new text begin; and
new text end

new text begin (iv) is incorporated in the state of Minnesotanew text end;

new text begin (3) anew text end Minnesota private collegenew text begin, notwithstanding clause (2),new text end that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136A; community college, state university, or technical collegedeleted text begin,deleted text end governed by the
Board of Trustees of the Minnesota State Colleges and Universities; or the University of
Minnesota deleted text beginmay sponsor one or more charter schools.deleted text endnew text begin; or
new text end

deleted text begin (b)deleted text endnew text begin (4)new text end a nonprofit corporation subject to chapter 317A, described in section
317A.905, and exempt from federal income tax under section 501(c)(6) of the Internal
Revenue Code of 1986, may deleted text beginsponsordeleted text endnew text begin authorizenew text end one or more charter schools if the charter
school has operated for at least three years under a different deleted text beginsponsordeleted text endnew text begin authorizernew text end and if the
nonprofit corporation has existed for at least 25 years.

new text begin (c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
approval, must consider the applicant's:
new text end

new text begin (1) capacity and infrastructure;
new text end

new text begin (2) application criteria and process;
new text end

new text begin (3) contracting process;
new text end

new text begin (4) ongoing oversight and evaluation processes; and
new text end

new text begin (5) renewal criteria and processes.
new text end

new text begin A disapproved applicant under this paragraph may resubmit an application during a
future application period.
new text end

new text begin (d) The authorizer must participate in ongoing department-approved training.
new text end

new text begin (e) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, to the commissioner for approval under paragraph (c) to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.
new text end

new text begin (f) The commissioner shall review an authorizer's performance at least once every
five years in a manner and form determined by the commissioner, and may review an
authorizer's performance more frequently at the commissioner's own initiative or at the
request of a charter school developer, operator, board member, or other interested party.
The commissioner, after completing the review, shall transmit a report with findings to the
authorizer. If, consistent with this section, the commissioner finds that an authorizer has
not performed satisfactorily, the commissioner may subject the authorizer to corrective
action, which may include terminating the contract with the board of a school it chartered.
The commissioner must notify the authorizer in writing of any findings that may subject
the authorizer to corrective action and the authorizer then has 15 business days to request
an informal hearing before the commissioner takes corrective action.
new text end

new text begin (g) The commissioner may take corrective action against an authorizer, including
terminating an authorizer's eligibility to charter a school for:
new text end

new text begin (1) failing to satisfy the criteria under which the commissioner approved the
authorizer;
new text end

new text begin (2) failing to perform satisfactorily as an approved authorizer; or
new text end

new text begin (3) violating a term of the chartering contract between the authorizer and charter
school board.
new text end

Subd. 4.

Formation of school.

(a) deleted text beginA sponsordeleted text endnew text begin An authorizer, after receiving an
application from a school developer,new text end may deleted text beginauthorizedeleted text endnew text begin charter a licensed teacher under
section 122A.18, subdivision 1, or a group of individuals that includesnew text end one or more
licensed teachers under section 122A.18, subdivision 1, to operate a deleted text begincharterdeleted text end school subject
to new text beginthe commissioner'snew text end approval deleted text beginby the commissionerdeleted text end new text beginof the authorizer's affidavit under
paragraph (b)new text end. deleted text beginA board must vote on charter school application for sponsorship no later
than 90 days after receiving the application.deleted text end The school must be organized and operated
as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
the provisions under the applicable chapter shall apply to the school except as provided
in this section.

Notwithstanding sections 465.717 and 465.719, a school districtnew text begin, subject to this
section and section 124D.11,new text end may create a corporation for the purpose of deleted text begincreatingdeleted text endnew text begin
establishingnew text end a charter school.

(b) Before the operators may deleted text beginformdeleted text endnew text begin establishnew text end and operate a school, the deleted text beginsponsordeleted text endnew text begin
authorizernew text end must file an affidavit with the commissioner stating its intent to deleted text beginauthorize adeleted text end
charter new text begina new text endschool. new text beginAn authorizer must file a separate affidavit for each school it intends
to charter. new text endThe affidavit must state the terms and conditions under which the deleted text beginsponsordeleted text endnew text begin
authorizernew text end would deleted text beginauthorize adeleted text end charter new text begina new text endschool and how the deleted text beginsponsordeleted text endnew text begin authorizernew text end intends
to oversee the fiscal and student performance of the charter school and to comply with
the terms of the written contract between the deleted text beginsponsordeleted text endnew text begin authorizernew text end and the charter school
board of directors under subdivision 6. The commissioner must approve or disapprove
the deleted text beginsponsor's proposed authorizationdeleted text end new text beginauthorizer's affidavit new text endwithin deleted text begin90deleted text end new text begin60 business new text enddays of
receipt of the affidavit. new text beginIf the commissioner disapproves the affidavit, the commissioner
shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20
business days to address the deficiencies. If the authorizer does not address deficiencies to
the commissioner's satisfaction, the commissioner's disapproval is final. new text endFailure to obtain
commissioner approval precludes deleted text begina sponsordeleted text end new text beginan authorizer new text endfrom deleted text beginauthorizingdeleted text endnew text begin charteringnew text end the
deleted text begin charterdeleted text end school that deleted text beginwasdeleted text endnew text begin isnew text end the subject of deleted text beginthedeleted text endnew text begin thisnew text end affidavit.

(c) new text beginThe authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.
new text end

new text begin (d) new text endThe operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
under chapter 317A and must establish a board of directors composed of at least five
membersnew text begin who are not related partiesnew text end until a timely election for members of the new text beginongoing
new text endcharter school board of directors is held according to the school's articles and bylawsnew text begin
under paragraph (f)new text end. A charter school board of directors must be composed of at least
five membersnew text begin who are not related partiesnew text end. deleted text beginAnydeleted text end Staff members deleted text beginwho aredeleted text end employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parentsnew text begin or legal guardiansnew text end of children enrolled in the school deleted text beginmay participate in the
election fordeleted text endnew text begin are the voters eligible to elect thenew text end members of the school's board of directors.
deleted text begin Licensed teachers employed at the school, including teachers providing instruction under
a contract with a cooperative, must be a majority of the members of the board of directors
before the school completes its third year of operation, unless the commissioner waives
the requirement for a majority of licensed teachers on the board.deleted text endnew text begin A charter school must
notify eligible voters of the school board election dates at least 30 days before the election.new text end
Board of director meetings must comply with chapter 13D.

deleted text begin (d) deleted text end new text begin (e) Upon the request of an individual, the charter school must make available
in a timely fashion the minutes of meetings of the board of directors, and of members
and committees having any board-delegated authority; financial statements showing all
operations and transactions affecting income, surplus, and deficit during the school's last
annual accounting period; and a balance sheet summarizing assets and liabilities on the
closing date of the accounting period. A charter school also must post on its official Web
site information identifying its authorizer and indicate how to contact that authorizer and
include that same information about its authorizer in other school materials that it makes
available to the public.
new text end

new text begin (f) Every charter school board member shall attend department-approved training
on board governance, the board's role and responsibilities, employment policies and
practices, and financial management. A board member who does not complete the
required training within 12 months of being seated on the board is ineligible to continue to
serve as a board member.
new text end

new text begin (g) The ongoing board must be elected before the school completes its third year of
operation. The board of directors shall be (i) a teacher majority board made up of licensed
teachers employed at the school or (ii) a board having at least 20 percent of its members
as licensed teachers employed at the school and must include charter school parents or
guardians and interested community members. Licensed teachers employed by the school,
or those providing instruction under a contract with a cooperative, may be members of the
board of directors. The chief financial officer and chief administrator are nonvoting board
members. Board bylaws shall outline the internal process and procedures for changing
the board's governance model. A board may change between the governance models
established in this paragraph only with approval from the authorizer and a voting majority
of the board of directors and the licensed teachers employed at the school, including
teachers providing instruction under a contract with a cooperative.
new text end

new text begin (h)new text end The granting or renewal of a charter by deleted text begina sponsoring entitydeleted text endnew text begin an authorizernew text end must
not be conditioned upon the bargaining unit status of the employees of the school.

deleted text begin (e) A sponsor deleted text end new text begin (i) The granting or renewal of a charter school by an authorizer must
not be contingent on the charter school being required to contract, lease, or purchase
services from the authorizer. Any potential contract, lease, or purchase of service from
an authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.
new text end

new text begin (j) The charter school shall not offer any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a
charter school.
new text end

new text begin (k) An authorizernew text end may deleted text beginauthorizedeleted text endnew text begin permitnew text end the deleted text beginoperatorsdeleted text endnew text begin board of directorsnew text end of a charter
school to expand the operation of the charter school to additional sites or to add additional
grades at the school beyond those described in the deleted text beginsponsor's applicationdeleted text endnew text begin authorizer's
original affidavitnew text end as approved by the commissioner only after submitting a supplemental
deleted text begin applicationdeleted text endnew text begin affidavit for approvalnew text end to the commissioner in a form and manner prescribed by
the commissioner. The supplemental deleted text beginapplicationdeleted text endnew text begin affidavitnew text end must deleted text beginprovide evidencedeleted text endnew text begin shownew text end
that:

(1) the expansion deleted text beginofdeleted text endnew text begin proposed bynew text end the charter school is supported by need and
projected enrollment;

new text begin (2) the charter school expansion is warranted, at a minimum, by longitudinal data
demonstrating students' improved academic performance and growth on statewide
assessments under chapter 120B;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end the charter school is fiscally soundnew text begin and has the financial capacity to implement
the proposed expansionnew text end;new text begin and
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end the deleted text beginsponsor supports thedeleted text endnew text begin authorizer finds that the charter school has the
management capacity to carry out itsnew text end expansiondeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (4) the building of the additional site meets all health and safety requirements to
be eligible for lease aid.
deleted text end

deleted text begin (f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:
deleted text end

deleted text begin (1) proactively assess opportunities for a charter school to maximize all available
revenue sources;
deleted text end

deleted text begin (2) establish and maintain complete, auditable records for the charter school;
deleted text end

deleted text begin (3) establish proper filing techniques;
deleted text end

deleted text begin (4) document formal actions of the charter school, including meetings of the charter
school board of directors;
deleted text end

deleted text begin (5) properly manage and retain charter school and student records;
deleted text end

deleted text begin (6) comply with state and federal payroll record-keeping requirements; and
deleted text end

deleted text begin (7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.
deleted text end

new text begin (l) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies
in the supplemental affidavit and the authorizer then has 30 business days to address,
to the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The
school may not expand grades or add sites until the commissioner has reviewed and
commented on the supplemental affidavit. The commissioner's approval or disapproval of
a supplemental affidavit is final.
new text end

Subd. 4a.

Conflict of interest.

(a) deleted text beginA member of a charter school board of directorsdeleted text endnew text begin
An individualnew text end is prohibited from serving as a member of the new text begincharter school new text endboard of
directors deleted text beginor asdeleted text endnew text begin if the individual, an immediate family member, or the individual's partner isnew text end
an new text beginowner, new text endemployee or agent of or a contractor with a for-profit new text beginor nonprofit new text endentity with
whom the charter school contracts, directly or indirectly, for professional services, goods,
or facilities. A violation of this prohibition renders a contract voidable at the option of
the commissionernew text begin or the charter school board of directorsnew text end. A member of a charter school
board of directors who violates this prohibition deleted text beginshall bedeleted text endnew text begin isnew text end individually liable to the charter
school for any damage caused by the violation.

new text begin (b) No member of the board of directors, employee, officer, or agent of a charter
school shall participate in selecting, awarding, or administering a contract if a conflict
of interest exists. A conflict exists when:
new text end

new text begin (1) the board member, employee, officer, or agent;
new text end

new text begin (2) the immediate family of the board member, employee, officer, or agent;
new text end

new text begin (3) the partner of the board member, employee, officer, or agent; or
new text end

new text begin (4) an organization that employs, or is about to employ any individual in clauses
(1) to (3),
new text end

new text begin has a financial or other interest in the entity with which the charter school is contracting.
A violation of this prohibition renders the contract void.
new text end

new text begin (c) Any employee, agent, or board member of the authorizer who participates
in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision is ineligible to serve on the board of directors of a school
chartered by that authorizer.
new text end

deleted text begin (b)deleted text endnew text begin (d)new text end An individual may serve as a member of the board of directors if no conflict
of interest under paragraph (a) exists.

deleted text begin (c) A member of a charter school board of directors that serves as a member of the
board of directors or as an employee or agent of or a contractor with a nonprofit entity
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities, must disclose all potential conflicts to the commissioner.
deleted text end

deleted text begin (d)deleted text endnew text begin (e)new text end The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.

deleted text begin (e)deleted text endnew text begin (f)new text end The conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a charter school through a cooperative formed under
chapter 308A when the teacher also serves on the charter school board of directors.

Subd. 5.

Conversion of existing schools.

A boardnew text begin of an independent or special
school districtnew text end may convert one or more of its existing schools to charter schools under
this section if 60 percent of the full-time teachers at the school sign a petition seeking
conversion. The conversion must occur at the beginning of an academic year.

Subd. 6.

new text beginCharter new text endcontract.

The deleted text beginsponsor'sdeleted text end authorization for a charter school must
be in the form of a written contract signed by the deleted text beginsponsordeleted text endnew text begin authorizernew text end and the board of
directors of the charter school. The contract must be completed within deleted text begin90deleted text endnew text begin 45 businessnew text end
days of the commissioner's approval of the deleted text beginsponsor's proposed authorization.deleted text end new text beginauthorizer's
affidavit. The authorizer shall submit to the commissioner a copy of the signed charter
contract within ten business days of its execution. new text endThe contract for a charter school must
be in writing and contain at least the following:

(1) a deleted text begindescription of a program that carries out one or more of the purposesdeleted text end
new text begin declaration of the purposes new text endin subdivision 1new text begin that the school intends to carry out and how
the school will report its implementation of those purposesnew text end;

(2) new text begina description of the school program and the new text endspecific new text beginacademic and nonacademic
new text endoutcomes new text beginthat new text endpupils deleted text beginare todeleted text endnew text begin mustnew text end achieve deleted text beginunder subdivision 10deleted text end;

(3) new text begina statement of new text endadmission policies and procedures;

(4) new text begina governance, new text endmanagementnew text begin,new text end and administration deleted text beginofdeleted text endnew text begin plan fornew text end the school;

(5) new text beginsigned agreements from charter school board members to comply with all federal
and state laws governing organizational, programmatic, and financial new text endrequirements deleted text beginand
procedures for program and financial auditsdeleted text endnew text begin applicable to charter schoolsnew text end;

(6) deleted text beginhow the school will comply with subdivisions 8, 13, 16, and 23deleted text endnew text begin the criteria,
processes, and procedures that the authorizer will use for ongoing oversight of operational,
financial, and academic performancenew text end;

(7) deleted text beginassumption of liability by the charter schooldeleted text endnew text begin the performance evaluation that is a
prerequisite for reviewing a charter contract under subdivision 15new text end;

(8) types and amounts of insurance new text beginliability new text endcoverage to be obtained by the charter
school;

(9) the term of the contract, which may be up to three yearsnew text begin for an initial contract
plus an additional preoperational planning year, and up to five years for a renewed contract
if warranted by the school's academic, financial, and operational performancenew text end;

(10) deleted text beginifdeleted text endnew text begin hownew text end the board of directors or the operators of the charter school new text beginwill new text endprovide
special instruction and services for children with a disability under sections 125A.03
to 125A.24, and 125A.65, a description of the financial parameters within which the
charter school will operate to provide the special instruction and services to children
with a disability; deleted text beginand
deleted text end

(11) the process and criteria the deleted text beginsponsordeleted text endnew text begin authorizernew text end intends to use to monitor
and evaluate the fiscal and student performance of the charter school, consistent with
subdivision 15deleted text begin.deleted text endnew text begin; and
new text end

new text begin (12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
and that includes establishing the responsibilities of the school board of directors and the
authorizer and notifying the commissioner, authorizer, school district in which the charter
school is located, and parents of enrolled students about the closure, the transfer of student
records to students' resident districts, and procedures for closing financial operations.
new text end

Subd. 6a.

Audit report.

new text begin(a) new text endThe charter school must submit an audit report to the
commissionernew text begin and its authorizernew text end by December 31 each year.new text begin The commissioner may
withhold the charter school's state aid if the charter school does not submit an audit by
January 31.
new text end

new text begin (b)new text end The charter school, with the assistance of the auditor conducting the audit, must
include with the report a copy of all charter school agreements for corporate management
services. If the entity that provides the professional services to the charter school is
exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
must file with the commissioner by February 15 a copy of the annual return required under
section 6033 of the Internal Revenue Code of 1986.

new text begin (c)new text end If the commissioner receives deleted text beginas part of thedeleted text endnew text begin annew text end audit report deleted text begina management letterdeleted text end
indicating that a material weakness exists in the financial reporting systems of a charter
school, the charter school must submit a written report to the commissioner explaining
how the material weakness will be resolved.

deleted text begin Upon the request of an individual, the charter school must make available in a timely
fashion the minutes of meetings of members, the board of directors, and committees
having any of the authority of the board of directors, and statements showing the financial
result of all operations and transactions affecting income and surplus during the school's
last annual accounting period and a balance sheet containing a summary of its assets and
liabilities as of the closing date of the accounting period.
deleted text end

Subd. 7.

Public status; exemption from statutes and rules.

A charter school is a
public school and is part of the state's system of public education. deleted text beginExcept as provided in
this section, a charter school is exempt from all statutes and rules applicable to a school, a
board, or a district, although it may elect to comply with one or more provisions of statutes
or rules.deleted text endnew text begin A charter school is exempt from all statutes and rules applicable to a school,
school board, or school district unless a statute or rule is made specifically applicable to a
charter school or is included in this section.
new text end

Subd. 8.

State and local requirements.

(a) A charter school shall meet all
deleted text begin applicabledeleted text endnew text begin federal,new text end statenew text begin,new text end and local health and safety requirementsnew text begin applicable to school
districtsnew text end.

(b)new text begin A school must comply with statewide education accountability requirements
governing standards and assessments in chapter 120B and must work with the Department
of Education to make available to the public valid and highly reliable comparisons
of student academic growth and achievement across schools consistent with school
performance report card information under section 120B.36.
new text end

new text begin (c)new text end A school deleted text beginsponsoreddeleted text endnew text begin authorizednew text end by a school board may be located in any district,
unless the school board of the district of the proposed location disapproves by written
resolution.

deleted text begin (c)deleted text endnew text begin (d)new text end A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. deleted text beginA sponsordeleted text endnew text begin An authorizernew text end may not
deleted text begin authorize adeleted text end charter new text begina new text endschool deleted text beginor programdeleted text end that is affiliated with a nonpublic sectarian
school or a religious institution.new text begin A charter school student must be released for religious
instruction, consistent with section 120A.22, subdivision 12, clause (3).
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled.

deleted text begin (e)deleted text endnew text begin (f)new text end The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.

deleted text begin (f)deleted text endnew text begin (g)new text end A charter school may not charge tuitionnew text begin to students who reside in Minnesotanew text end.

deleted text begin (g)deleted text endnew text begin (h)new text end A charter school is subject to and must comply with chapter 363A and
section 121A.04.

deleted text begin (h)deleted text endnew text begin (i)new text end A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

deleted text begin (i)deleted text endnew text begin (j)new text end A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district. Audits must be conducted in compliance with generally
accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
and section 6.65. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; deleted text begin123B.52, subdivision 5;deleted text end
471.38; 471.391; 471.392;new text begin andnew text end 471.425deleted text begin; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6,
12, 13, and 15; 471.881; and 471.89deleted text end. The audit must comply with the requirements of
sections 123B.75 to 123B.83, except to the extent deviations are necessary because of the
program at the school. Deviations must be approved by the commissionernew text begin and authorizernew text end.
The Department of Education, state auditor, deleted text beginordeleted text end legislative auditornew text begin, or authorizernew text end may
conduct financial, program, or compliance audits. A charter school determined to be in
statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under
section 123B.81, subdivision 4.

deleted text begin (j)deleted text endnew text begin (k)new text end A charter school is a district for the purposes of tort liability under chapter 466.

deleted text begin (k)deleted text endnew text begin (l)new text end A charter school must comply withnew text begin chapters 13 and 13D; andnew text end sections deleted text begin13.32;deleted text end
120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.

deleted text begin (l)deleted text endnew text begin (m)new text end A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

new text begin (n) A charter school is subject to chapter 181.
new text end

new text begin (o) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.
new text end

new text begin Subd. 8a. new text end

new text begin Aid reduction. new text end

new text begin The commissioner may reduce a charter school's state aid
under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
under this section.
new text end

new text begin Subd. 8b. new text end

new text begin Aid reduction for violations. new text end

new text begin The commissioner may reduce a charter
school's state aid by an amount not to exceed 60 percent of the charter school's basic
revenue for the period of time that a violation of law occurs.
new text end

Subd. 9.

Admission requirements.

A charter school may limit admission to:

(1) pupils within an age group or grade level;new text begin or
new text end

(2) people who are eligible to participate in the graduation incentives program
under section 124D.68deleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (3) residents of a specific geographic area where the percentage of the population
of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
population in the congressional district in which the geographic area is located, and as
long as the school reflects the racial and ethnic diversity of the specific area.
deleted text end

A charter school shall enroll an eligible pupil who submits a timely application,
unless the number of applications exceeds the capacity of a program, class, grade level,
or building. In this case, pupils must be accepted by lot. deleted text beginIf a charter school is the only
school located in a town serving pupils within a particular grade level, then pupils that
are residents of the town must be given preference for enrollment before accepting pupils
by lot. If a pupil lives within two miles of a charter school and the next closest public
school is more than five miles away, the charter school must give those pupils preference
for enrollment before accepting other pupils by lot.deleted text endnew text begin The charter school must develop and
publish a lottery policy and process that it must use when accepting pupils by lot.
new text end

A charter school shall give preference for enrollment to a sibling of an enrolled pupil
and to a foster child of that pupil's parentsnew text begin and may give preference for enrolling children
of the school's employeesnew text end before accepting other pupils by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability,
measures of achievement or aptitude, or athletic abilitynew text begin and may not establish any criteria
or requirements for admission that are inconsistent with this subdivisionnew text end.

Subd. 10.

Pupil performance.

A charter school must design its programs to at
least meet the outcomes adopted by the commissioner for public school students. In the
absence of the commissioner's requirements, the school must meet the outcomes contained
in the contract with the deleted text beginsponsordeleted text endnew text begin authorizernew text end. The achievement levels of the outcomes
contained in the contract may exceed the achievement levels of any outcomes adopted by
the commissioner for public school students.

Subd. 11.

Employment and other operating matters.

A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
who hold valid licenses to perform the particular service for which they are employed in
the school. The charter school's state aid may be reduced under section deleted text begin127A.42deleted text endnew text begin 127A.43new text end
if the school employs a teacher who is not appropriately licensed or approved by the
board of teaching. The school may employ necessary employees who are not required to
hold teaching licenses to perform duties other than teaching and may contract for other
services. The school may discharge teachers and nonlicensed employees. new text beginThe charter
school board is subject to section 181.932. When offering employment to a prospective
employee, a charter school must give that employee a written description of the terms and
conditions of employment and the school's personnel policies. new text endA person, without holding
a valid administrator's license, may perform administrative, supervisory, or instructional
leadership duties.

The board of directors also shall decide matters related to the operation of the school,
including budgeting, curriculum and operating procedures.

Subd. 12.

Pupils with a disability.

A charter school must comply with sections
125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
with a disability as though it were a district.

Subd. 13.

Length of school year.

A charter school must provide instruction
each year for at least the number of days required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

Subd. 14.

Annual public reports.

A charter school must new text beginpublish an annual new text endreport deleted text beginat
least annually to its sponsor and the commissioner the information required by the sponsor
or the commissionerdeleted text endnew text begin approved by the charter school board of directors. The annual report
must at least include information on school enrollment, governance and management,
staffing, finances, academic performance, operational performance, innovative practices
and implementation, and future plans. A charter school must distribute the annual
report by publication, mail, or electronic means to the commissioner, authorizer, school
employees, and parents and legal guardians of students enrolled in the charter school and
also must post the report on the charter school's official Web sitenew text end. The reports are public
data under chapter 13.

Subd. 15.

Review and comment.

(a) deleted text beginThe department must review and comment on
the evaluation, by the sponsor, of the performance of a charter school before the charter
school's contract is renewed for another contract term. The sponsor must submit to
the commissioner timely information for the review and comment.deleted text endnew text begin The commissioner
must review and comment on the authorizer's performance evaluation process at the
time the authorizer submits its application for approval as an authorizer and each time
the authorizer undergoes its five-year review under subdivision 3, paragraph (f). Before
renewing a charter contract, the authorizer shall provide the commissioner with a formal,
written evaluation of the school's performance.
new text end

(b) deleted text beginA sponsordeleted text endnew text begin An authorizernew text end shall monitor and evaluate the fiscal and student
performance of the school, and may for this purpose annually assess a charter schooldeleted text begin: (1)deleted text end
deleted text begin in its first, second, or third year of operation up to $30 per student up to a maximum of
deleted text enddeleted text begin$10,000; and (2) in its fourth or a subsequent year of operation up to deleted text enddeleted text begin$10deleted text enddeleted text begin per student deleted text enddeleted text beginup to
a maximum of deleted text enddeleted text begin$3,500deleted text endnew text begin a fee according to paragraph (c)new text end.

new text begin (c) The minimum fee that each charter school pays to an authorizer is the basic
formula allowance for that year. Beginning in fiscal year 2013, the maximum fee is four
times the formula allowance for that year. Beginning in fiscal year 2013, each charter
school's fee, subject to the minimum and maximum fees, equals the product of .015, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil
units for that year.
new text end

new text begin (d) Notwithstanding paragraph (c), the following charter school fees apply, subject
to the minimum and maximum fee in paragraph (c):
new text end

new text begin (1) for fiscal year 2010 only, each charter school's fee equals the product of .01, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil units
for that year and the maximum fee is two times the basic formula allowance for that year;
new text end

new text begin (2) for fiscal year 2011 only, each charter school's fee equals the product of .01, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil
units for that year and the maximum fee is three times the basic formula allowance for
that year; and
new text end

new text begin (3) for fiscal year 2012 only, each charter school's fee equals the product of .013, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil units
for that year and the maximum fee is four times the basic formula allowance for that year.
new text end

new text begin (e) For the preoperational planning period, the authorizer may assess a charter school
the formula allowance for one pupil unit.
new text end

new text begin (f) Each year by September 30, an authorizer shall submit to the commissioner a
statement of expenditures related to authorizing activities during the previous school year
ending on June 30. The authorizer must transmit a copy of the statement to all schools
chartered by the authorizer.
new text end

Subd. 16.

Transportation.

(a) A charter school after its first fiscal year of operation
by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
operation must notify the district in which the school is located and the Department of
Education if it will provide its own transportation or use the transportation services of the
district in which it is located for the fiscal year.

(b) If a charter school elects to provide transportation for pupils, the transportation
must be provided by the charter school within the district in which the charter school is
located. The state must pay transportation aid to the charter school according to section
124D.11, subdivision 2.

For pupils who reside outside the district in which the charter school is located, the
charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. A parent
may be reimbursed by the charter school for costs of transportation from the pupil's
residence to the border of the district in which the charter school is located if the pupil is
from a family whose income is at or below the poverty level, as determined by the federal
government. The reimbursement may not exceed the pupil's actual cost of transportation
or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
more than 250 miles per week.

At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.

(c) If a charter school does not elect to provide transportation, transportation for
pupils enrolled at the school must be provided by the district in which the school is
located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
pupil residing in the same district in which the charter school is located. Transportation
may be provided by the district in which the school is located, according to sections
123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different
district. If the district provides the transportation, the scheduling of routes, manner and
method of transportation, control and discipline of the pupils, and any other matter relating
to the transportation of pupils under this paragraph shall be within the sole discretion,
control, and management of the district.

Subd. 17.

Leased space.

new text begin(a) new text endA charter school may lease space from deleted text beginadeleted text endnew text begin an
independent or special schoolnew text end board eligible to be deleted text begina sponsor ordeleted text endnew text begin an authorizer,new text end other public
deleted text begin ordeleted text endnew text begin organization,new text end privatenew text begin,new text end nonprofit nonsectarian organizationnew text begin, private property owner,
or a sectarian organization if the leased space is constructed as a school facility. The
department must review and approve or disapprove leases in a timely mannernew text end. deleted text beginIf a charter
school is unable to lease appropriate space from an eligible board or other public or private
nonprofit nonsectarian organization, the school may lease space from another nonsectarian
organization if the Department of Education, in consultation with the Department of
Administration, approves the lease. If the school is unable to lease appropriate space from
public or private nonsectarian organizations, the school may lease space from a sectarian
organization if the leased space is constructed as a school facility and the Department of
Education, in consultation with the Department of Administration, approves the lease.deleted text endnew text begin
The lease aid payments for charter schools that lease a facility from a school district or
other government entity is limited to the same level of lease aid as defined in Minnesota
Statutes 2008, section 124D.11, subdivision 4.
new text end

new text begin (b) Upon approval of the authorizer, a charter school that has operated at least five
consecutive years may form a separate affiliated nonprofit building company to provide a
school facility. The authorizer shall submit a supplemental affidavit to the commissioner
stating that the authorizer has reviewed:
new text end

new text begin (1) the school's feasibility study on facility options;
new text end

new text begin (2) documents showing the school's need and projected enrollment for such a
facility; and
new text end

new text begin (3) the school's financial plan and financial status.
new text end

new text begin The school is prohibited from organizing the nonprofit building company until the
authorizer files a supplementary affidavit with the commissioner and receives approval
from the commissioner.
new text end

new text begin (c) A charter school that leases a facility from a building company under paragraph
(b) must include in its lease agreement a clause that recognizes the reductions in lease aid
applicable under section 124D.11, subdivision 4, when the bonds or mortgage to cover the
original purchase and renovation or construction of the facility have been retired.
new text end

deleted text begin Subd. 18. deleted text end

deleted text begin Authority to raise initial working capital. deleted text end

deleted text begin A sponsor may authorize
a charter school before the applicant has secured its space, equipment, facilities, and
personnel if the applicant indicates the authority is necessary for it to raise working
capital. A sponsor may not authorize a school before the commissioner has approved the
authorization.
deleted text end

Subd. 19.

Disseminate information.

new text begin(a)new text end The deleted text beginsponsordeleted text endnew text begin authorizernew text end, the operators, and
the deleted text beginDepartment of Educationdeleted text endnew text begin departmentnew text end must disseminate information to the public
on how to form and operate a charter school deleted text beginanddeleted text endnew text begin. Charter schools must disseminate
information aboutnew text end how to deleted text beginutilizedeleted text endnew text begin usenew text end the offerings of a charter school. deleted text beginParticulardeleted text endnew text begin Targetednew text end
groups deleted text beginto be targeteddeleted text end include low-income families and communities, deleted text beginanddeleted text end students of
colornew text begin, and students who are at risk of academic failurenew text end.

new text begin (b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by charter
schools.
new text end

Subd. 20.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made deleted text beginup to 90 days before the teacher would otherwise have to report for dutydeleted text endnew text begin before
February 1 in the school year preceding the school year in which the teacher intends
to leave, or February 1 of the calendar year in which the teacher's leave is scheduled
to terminatenew text end. Except as otherwise provided in this subdivision and except for section
122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not
limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account deleted text beginby paying both the employer and employee
contributions based upon the annual salary of the teacher for the last full pay period before
the leave began. The retirement association may impose reasonable requirements to
efficiently administer this subdivisiondeleted text endnew text begin under chapters 354 and 354A, consistent with
subdivision 22new text end.

Subd. 21.

Collective bargaining.

Employees of the board of directors of a charter
school may, if otherwise eligible, organize under chapter 179A and comply with its
provisions. The board of directors of a charter school is a public employer, for the
purposes of chapter 179A, upon formation of one or more bargaining units at the school.
Bargaining units at the school must be separate from any other units within deleted text beginthe sponsoringdeleted text endnew text begin
an authorizingnew text end district, except that bargaining units may remain part of the appropriate
unit within deleted text beginthe sponsoringdeleted text endnew text begin an authorizingnew text end district, if the employees of the school, the
board of directors of the school, the exclusive representative of the appropriate unit in the
deleted text begin sponsoringdeleted text endnew text begin authorizingnew text end district, and the board of the deleted text beginsponsoringdeleted text endnew text begin authorizingnew text end district agree
to include the employees in the appropriate unit of the deleted text beginsponsoringdeleted text endnew text begin authorizingnew text end district.

Subd. 22.

Teacher and other employee retirement.

(a) Teachers in a charter
school must be public school teachers for the purposes of chapters 354 and 354a.

(b) Except for teachers under paragraph (a), employees in a charter school must be
public employees for the purposes of chapter 353.

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with a deleted text beginsponsordeleted text end new text beginauthorizer new text endmust be for the term contained in
the contract according to subdivision 6. The deleted text beginsponsordeleted text end new text beginauthorizer new text endmay or may not renew a
contract at the end of the term for any ground listed in paragraph (b). A deleted text beginsponsordeleted text end new text beginauthorizer
new text endmay unilaterally terminate a contract during the term of the contract for any ground
listed in paragraph (b). At least 60 days before not renewing or terminating a contract,
the deleted text beginsponsordeleted text endnew text begin authorizernew text end shall notify the board of directors of the charter school of the
proposed action in writing. The notice shall state the grounds for the proposed action in
reasonable detail and that the charter school's board of directors may request in writing an
informal hearing before the deleted text beginsponsordeleted text end new text beginauthorizer new text endwithin deleted text begin14deleted text endnew text begin 15 businessnew text end days of receiving
notice of nonrenewal or termination of the contract. Failure by the board of directors to
make a written request for a hearing within the deleted text begin14-daydeleted text endnew text begin 15-business-daynew text end period shall be
treated as acquiescence to the proposed action. Upon receiving a timely written request
for a hearing, the deleted text beginsponsordeleted text end new text beginauthorizer new text endshall give deleted text beginreasonabledeleted text endnew text begin ten business days'new text end notice to
the charter school's board of directors of the hearing date. The deleted text beginsponsordeleted text end new text beginauthorizer new text endshall
conduct an informal hearing before taking final action. The deleted text beginsponsordeleted text endnew text begin authorizernew text end shall take
final action to renew or not renew a contract deleted text beginby the last day of classes in the school year.
If the sponsor is a local board, the school's board of directors may appeal the sponsor's
decision to the commissionerdeleted text endnew text begin no later than 20 business days before the proposed date for
terminating the contract or the end date of the contractnew text end.

(b) A contract may be terminated or not renewed upon any of the following grounds:

(1) failure to meet the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 308A or 317Adeleted text begin, except when
the commissioner approves the decision of a different eligible sponsor to authorize the
charter schooldeleted text end.

(c) If deleted text beginat the end of a contract term, eitherdeleted text end the deleted text beginsponsor ordeleted text end new text beginauthorizer and new text endthe charter
school board of directors deleted text beginwantsdeleted text endnew text begin mutually agreenew text end to voluntarily terminate new text beginor not renew
new text endthe contract, a change in deleted text beginsponsorsdeleted text endnew text begin authorizersnew text end is allowed if the commissioner approves
the deleted text begindecision ofdeleted text endnew text begin transfer tonew text end a different deleted text begineligible sponsordeleted text endnew text begin approved authorizernew text end to deleted text beginauthorizedeleted text endnew text begin
charternew text end the deleted text begincharterdeleted text end school. deleted text beginThe party intending to terminate the contract must notify the
other party and the commissioner of its intent at least 90 days before the date on which the
contract ends.deleted text endnew text begin Both parties jointly must submit their intent in writing to the commissioner
to mutually terminate the contract.new text end The deleted text beginsponsordeleted text endnew text begin authorizernew text end that is a party to the existing
contract deleted text beginat leastdeleted text end must inform the approved deleted text begindifferent eligible sponsordeleted text endnew text begin new authorizernew text end about
the fiscal and new text beginoperational status, and new text endstudent performance of the school. If no deleted text begindifferent
eligible sponsordeleted text endnew text begin transfer of authorizernew text end is approved, the school must be dissolved according
to applicable law and the terms of the contract.

(d) The commissioner, after providing reasonable notice to the board of directors of
a charter school and the existing deleted text beginsponsordeleted text endnew text begin authorizernew text end, and after providing an opportunity for
a public hearing, may terminate the existing deleted text beginsponsorial relationshipdeleted text endnew text begin contract between the
authorizer and the charter school boardnew text end if the charter school has a history of:

(1)new text begin failure to meet pupil performance requirements contained in the contract;
new text end

new text begin (2)new text end financial mismanagementnew text begin or failure to meet generally accepted standards of
fiscal managementnew text end; or

deleted text begin (2)deleted text endnew text begin (3)new text end repeated new text beginor major new text endviolations of the law.

new text begin (e) If the commissioner terminates a charter school contract because the authorizer
fails to comply with subdivision 3, paragraph (g), the commissioner shall provide the
charter school with information about other eligible authorizers.
new text end

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party deleted text beginas defined in subdivision 26,deleted text end unless
the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b)new text begin For purposes of this section and section 124D.11:
new text end

new text begin (1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
new text end

new text begin (2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;
new text end

new text begin (3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;
new text end

new text begin (4) "person" means an individual or entity of any kind; and
new text end

new text begin (5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.
new text end

new text begin (c)new text end A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

deleted text begin (c)deleted text endnew text begin (d)new text end If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4, clause (1).

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

If a contract is not renewed or is terminated according to subdivision 23, a
pupil who attended the school, siblings of the pupil, or another pupil who resides in the
same place as the pupil may enroll in the resident district or may submit an application
to a nonresident district according to section 124D.03 at any time. Applications and
notices required by section 124D.03 must be processed and provided in a prompt manner.
The application and notice deadlines in section 124D.03 do not apply under these
circumstances. The closed charter school must transfer the student's educational records
within ten business days of closure to the student's school district of residence where the
records must be retained or transferred under section 120A.22, subdivision 7.

Subd. 25.

Extent of specific legal authority.

(a) The board of directors of a charter
school may sue and be sued.

(b) The board may not levy taxes or issue bonds.

(c) The commissioner, deleted text begina sponsordeleted text endnew text begin an authorizernew text end, members of the board of deleted text begina sponsordeleted text endnew text begin
an authorizernew text end in deleted text begintheirdeleted text end official capacity, and employees of deleted text begina sponsordeleted text endnew text begin an authorizernew text end are
immune from civil or criminal liability with respect to all activities related to a charter
school they approve or deleted text beginsponsordeleted text endnew text begin authorizenew text end. The board of directors shall obtain at least
the amount of and types of insurance deleted text beginrequired by the contract, according to subdivision
6.deleted text endnew text begin up to the applicable tort liability limits under chapter 466. The charter school board
must submit a copy of the insurance policy to its authorizer before starting operations.
The charter school board must submit changes in its insurance carrier or policy to its
authorizer within 20 business days of the change.
new text end

deleted text begin Subd. 26. deleted text end

deleted text begin Definitions. deleted text end

deleted text begin For purposes of this section and section 124D.11:
deleted text end

deleted text begin (1) A "Related party" is an affiliate or close relative of the other party in question, an
affiliate of a close relative, or a close relative of an affiliate.
deleted text end

deleted text begin (2) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, another
person.
deleted text end

deleted text begin (3) "Close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin.
deleted text end

deleted text begin (4) "Person" means an individual or entity of any kind.
deleted text end

deleted text begin (5) "Control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective the day following final enactment
and applies beginning August 1, 2009, unless otherwise specified in this effective date.
new text end

new text begin (b) Subdivision 3, paragraph (b), clause (2), applies to an authorizer seeking
approval to charter a school after the effective date of this act. The changes in subdivision
3, paragraph (b), clause (2), shall not apply to a sponsor under Minnesota Statutes 2008,
section 124D.10, that is a party to a charter contract on the effective date of this act
except that subdivision 3, paragraph (b), clause (2), item (iv), applies to such sponsors
beginning July 1, 2012.
new text end

Sec. 40.

Minnesota Statutes 2008, section 124D.11, subdivision 4, is amended to read:

Subd. 4.

Building lease aid.

new text begin(a) new text endWhen a charter school finds it economically
advantageous to rent or lease a building or land for any instructional purposes and it
determines that the total operating capital revenue under section 126C.10, subdivision 13,
is insufficient for this purpose, it may apply to the commissioner for building lease aid
for this purpose. The commissioner must review and either approve or deny a lease aid
application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.

A charter school must not use the building lease aid it receives for custodial, maintenance
service, utility, or other operating costs. The amount of building lease aid per pupil unit
served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
the approved cost or (b) the product of the pupil units served for the current school year
times the greater of the charter school's building lease aid per pupil unit served for fiscal
year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
or $1,200.

new text begin (b) A charter school using lease aid to make payments to a building corporation,
school district, or other governmental entity for the purpose of retiring the debt on that
building is eligible for the amount of lease aid calculated under paragraph (a) until
such time as the bonds or mortgage to cover the original purchase and renovation or
construction are retired. For each subsequent year, the charter school is eligible for lease
aid equal to 50 percent of the maximum lease aid amount in paragraph (a) unless the
commissioner approves an expansion of the charter school facility, in which case the
charter school is eligible for the full amount of lease aid under paragraph (a) until the
additional debt is retired.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies beginning August 1, 2009.
new text end

Sec. 41.

Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:

Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section
127A.45, subdivision 3, aid payments for the current fiscal year to a charter school deleted text beginnot in
its first year of operationdeleted text end shall be of an equal amount on each of the deleted text begin23deleted text endnew text begin 24new text end payment dates.
deleted text begin A charter school in its first year of operation shall receive, on its first payment date, ten
percent of its cumulative amount guaranteed for the year and 22 payments of an equal
amount thereafter the sum of which shall equal the current year aid payment percentage
multiplied by the cumulative amount guaranteed.deleted text end

(b) Notwithstanding paragraph (a)new text begin and section 127A.45new text end, for a charter school ceasing
operationnew text begin on ornew text end prior to deleted text beginthe end of a school year, the current year aid payment percentage
multiplied by the amount due for the school year may be paid to the school after audit
of prior fiscal year and current fiscal year pupil counts.deleted text endnew text begin June 30 of a school year, for the
payment periods occurring after the school ceases serving students, the commissioner shall
withhold the estimated state aid owed the school. The charter school board of directors
and authorizer must submit to the commissioner a closure plan under chapter 308A or
317A, and financial information about the school's liabilities and assets. After receiving
the closure plan, financial information, an audit of pupil counts, documentation of lease
expenditures, and monitoring of special education expenditures, the commissioner may
release cash withheld and may continue regular payments up to the current year payment
percentages if further amounts are owed. If, based on audits and monitoring, the school
received state aid in excess of the amount owed, the commissioner shall retain aid withheld
sufficient to eliminate the aid overpayment.new text end For a charter school ceasing operations
prior to, or at the end of, a school year, notwithstanding section 127A.45, subdivision
3, preliminary final payments may be made afternew text begin receiving the closure plan,new text end audit of
pupil counts, monitoring of special education expenditures, deleted text beginanddeleted text end documentation of lease
expendituresnew text begin, and school submission of Uniform Financial Accounting and Reporting
Standards (UFARS) financial datanew text end for the final year of operation. Final payment may be
made upon receipt of audited financial statements under section 123B.77, subdivision 3.

(c)new text begin If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.
new text end

new text begin (d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.
new text end

new text begin (e)new text end Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.

deleted text begin (d)deleted text endnew text begin (f)new text end In order to receive state aid payments under this subdivision, a charter school
in its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.

deleted text begin (e)deleted text endnew text begin (g)new text end Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

Sec. 42.

Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:

Subd. 2.

Commissioner designation.

(a) deleted text beginAn area learning centerdeleted text endnew text begin A state-approved
alternative programnew text end designated by the state must be a site. deleted text beginAn area learning centerdeleted text endnew text begin A
state-approved alternative programnew text end must provide services to students who meet the criteria
in section 124D.68 and who are enrolled in:

(1) a district that is served by the deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end; or

(2) a charter school located within the geographic boundaries of a district that is
served by the deleted text begincenterdeleted text endnew text begin state-approved alternative programnew text end.

(b) A school district or charter school may be approved biennially by the state to
provide additional instructional programming that results in grade level acceleration. The
program must be designed so that students make grade progress during the school year
and graduate prior to the students' peers.

(c) To be designated, a district, charter school, or deleted text begincenterdeleted text endnew text begin state-approved alternative
programnew text end must demonstrate to the commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction
throughout the entire year; and

(2) develop and maintain a separate record system that, for purposes of section
126C.05, permits identification of membership attributable to pupils participating in the
program. The record system and identification must ensure that the program will not have
the effect of increasing the total average daily membership attributable to an individual
pupil as a result of a learning year program. The record system must include the date the
pupil originally enrolled in a learning year program, the pupil's grade level, the date of
each grade promotion, the average daily membership generated in each grade level, the
number of credits or standards earned, and the number needed to graduate.

(d) A student who has not completed a school district's graduation requirements
may continue to enroll in courses the student must complete in order to graduate until
the student satisfies the district's graduation requirements or the student is 21 years old,
whichever comes first.

Sec. 43.

Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:

Subd. 3.

Student planning.

A district, charter school, or deleted text beginarea learning centerdeleted text endnew text begin
state-approved alternative programnew text end must inform all pupils and their parents about the
learning year program and that participation in the program is optional. A continual
learning plan must be developed at least annually for each pupil with the participation
of the pupil, parent or guardian, teachers, and other staff; each participant must sign and
date the plan. The plan must specify the learning experiences that must occur during the
entire fiscal year and are necessary for grade progression or, for secondary students,
graduation. The plan must include:

(1) the pupil's learning objectives and experiences, including courses or credits the
pupil plans to complete each year and, for a secondary pupil, the graduation requirements
the student must complete;

(2) the assessment measurements used to evaluate a pupil's objectives;

(3) requirements for grade level or other appropriate progression; and

(4) for pupils generating more than one average daily membership in a given grade,
an indication of which objectives were unmet.

The plan may be modified to conform to district schedule changes. The district may
not modify the plan if the modification would result in delaying the student's time of
graduation.

Sec. 44.

Minnesota Statutes 2008, section 124D.42, subdivision 6, is amended to read:

Subd. 6.

Program training.

The commission must, within available resources:

(1) orient each grantee organization in the nature, philosophy, and purpose of the
program;new text begin and
new text end

(2) build an ethic of community service through general community service trainingdeleted text begin;
anddeleted text endnew text begin.
new text end

deleted text begin (3) provide additional training as it determines necessary, which may include
training in evaluating early literacy skills and teaching reading to preschool children
through the St. Croix River Education District under Laws 2001, First Special Session
chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and
evaluating Head Start programs for developing children's early literacy skills.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 45.

Minnesota Statutes 2008, section 124D.42, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Minnesota reading corps program. new text end

new text begin (a) A Minnesota reading corps
program is established to provide Americorps members with a data-based problem-solving
model of literacy instruction to use in helping to train local Head Start program providers,
other prekindergarten program providers, and staff in schools with students in kindergarten
through grade 3 to evaluate and teach early literacy skills to children age 3 to grade 3.
new text end

new text begin (b) Literacy programs under this subdivision must comply with the provisions
governing literacy program goals and data use under section 119A.50, subdivision 3,
paragraph (b).
new text end

Sec. 46.

Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:

Subd. 2.

Eligible pupils.

A pupil under the age of 21 or who meets the requirements
of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
incentives program, if the pupil:

(1) performs substantially below the performance level for pupils of the same age
in a locally determined achievement test;

(2) is deleted text beginat least one yeardeleted text end behind in satisfactorily completing coursework or obtaining
credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been referred by a school district for enrollment in an eligible program or
a program pursuant to section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a
transfer to an eligible program;

(10) speaks English as a second language or has limited English proficiency; or

(11) has withdrawn from school or has been chronically truant; or

(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
other life threatening illness or is the sibling of an eligible pupil who is being currently
treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
of the seven-county metropolitan area.

Sec. 47.

Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:

Subd. 3.

Eligible programs.

(a) A pupil who is eligible according to subdivision 2
may enroll in deleted text beginarea learning centersdeleted text endnew text begin a state-approved alternative programnew text end under sections
123A.05 to 123A.08.

(b) A pupil who is eligible according to subdivision 2 and who is deleted text beginbetween the ages
of 16 and 21deleted text endnew text begin a high school junior or seniornew text end may enroll in postsecondary courses under
section 124D.09.

(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic,
nonsectarian school that has contracted with the serving school district to provide
educational services. However, notwithstanding other provisions of this section, only a
pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative
school that is specifically structured to provide educational services to such a pupil.

(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic
education programs approved under section 124D.52 and operated under the community
education program contained in section 124D.19.

Sec. 48.

Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:

Subd. 4.

Additional eligible program.

A pupil who is at least 16 years of age,
who is eligible under subdivision 2, deleted text beginclause (a),deleted text end and who has been enrolled only in a
public school, if the pupil has been enrolled in any school, during the year immediately
before transferring under this subdivision, may transfer to any nonpublic school that has
contracted with the serving school district to provide nonsectarian educational services.
The school must enroll every eligible pupil who seeks to transfer to the school under
this program subject to available space.

Sec. 49.

Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:

Subd. 5.

Pupil enrollment.

new text begin(a) new text endAny eligible pupil may apply to enroll in an eligible
program. Approval of the resident district is not required for:

(1) an eligible pupil to enroll in any eligible program in a nonresident district
under subdivision 3 or 4 or deleted text beginan area learning centerdeleted text endnew text begin a state-approved alternative programnew text end
established under section 123A.05; or

(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
program approved under section 124D.52.

new text begin (b) Notwithstanding paragraph (a), a nonresident district must first approve the
enrollment application of any eligible pupil who was expelled under section 121A.45 for a
reason stated in section 124D.03, subdivision 1, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
new text end

Sec. 50.

Minnesota Statutes 2008, section 124D.83, subdivision 4, is amended to read:

Subd. 4.

Early childhood family education revenue.

A school receiving aid
under this section deleted text beginis eligibledeleted text end new text beginmay apply annually to the commissioner new text endto receive new text beginan new text endearly
childhood family education deleted text beginrevenuedeleted text endnew text begin grantnew text end to provide early childhood family education
programs for parents and children who are enrolled or eligible for enrollment in a federally
recognized tribe. deleted text beginThe revenue equals 1.5 times the statewide average expenditure per
participant under section 124D.135, times the number of children and parents participating
full time in the program.deleted text end The deleted text beginprogram mustdeleted text endnew text begin grant must be used for programs and services
thatnew text end comply with section 124D.13, except that the school is not required to provide a
community education program or establish a community education advisory council. The
program must be designed to improve the skills of parents and promote American Indian
history, language, and culture. The school must make affirmative efforts to encourage
participation by fathers. Admission may not be limited to those enrolled in or eligible for
enrollment in a federally recognized tribe.

Sec. 51.

Minnesota Statutes 2008, section 124D.86, subdivision 1, is amended to read:

Subdivision 1.

Use of revenue.

new text begin (a) An adjoining district that develops a plan under
Minnesota Rules, parts 3535.0160 and 3535.0170, is not required to implement the plan.
new text end

new text begin (b) Districts must use new text endintegration revenue under this section deleted text beginmust be useddeleted text end for
programs established under a desegregation plan filed with the Department of Education
according to Minnesota Rules, parts 3535.0100 to 3535.0180, or under court order. The
revenue must be used deleted text beginto create or enhance learning opportunities which are designed to
provide opportunitiesdeleted text end for students to have increasednew text begin and sustainednew text end interracial contacts
new text begin and improved educational opportunities and outcomes designed to close the academic
achievement gap between white students and protected students as defined in Minnesota
Rules, part 3535.0110, subpart 4, new text endthrough classroom experiences, staff initiatives, and
other educationally related programsnew text begin, consistent with subdivision 1bnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 52.

Minnesota Statutes 2008, section 124D.86, subdivision 1a, is amended to read:

Subd. 1a.

Budget approval process.

Each year before a district receives any
revenue under subdivision 3, deleted text beginclause (4), (5), or (6),deleted text end the district new text beginby April 1new text end must submit to
the Department of Education, for its review and approval new text beginby April 30new text end a budget detailing the
costs of the desegregation/integration plan filed under Minnesota Rules, parts 3535.0100
to 3535.0180. Notwithstanding chapter 14, the department may develop criteria for
budget approvalnew text begin, consistent with subdivision 1bnew text end. The department shall consult with the
Desegregation Advisory Board in developing these criteria. The criteria developed by the
department deleted text beginshoulddeleted text endnew text begin mustnew text end address, at a minimum, the following:

(1) budget items cannot be approved unless they are part of any overall desegregation
plan approved by the district for isolated sites or by the Multidistrict Collaboration
Council and deleted text beginparticipationdeleted text endnew text begin participatingnew text end individual members;

(2) the budget must indicate how revenue expenditures will be used specifically to
support increased deleted text beginopportunities fordeleted text endnew text begin and sustainednew text end interracial deleted text begincontactdeleted text endnew text begin contacts and improved
educational opportunities and outcomes designed to close the academic achievement
gap between white students and protected students as defined in Minnesota Rules, part
3535.0110, subpart 4, consistent with subdivision 1bnew text end;

(3) components of the budget to be considered by the department, including staffing,
curriculum, transportation, facilities, materials, and equipment and reasonable planning
costs, as determined by the department; and

(4) if plans are proposed to enhance existing programs, the total budget being
appropriated to the program must be included, indicating what part is to be funded using
integration revenue and what part is to be funded using other revenues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 53.

Minnesota Statutes 2008, section 124D.86, subdivision 1b, is amended to read:

Subd. 1b.

Plan components.

new text beginEach year a district's board must approve the new text endplans
submitted by each district under Minnesota Rules, parts 3535.0160 and 3535.0170,
deleted text begin must be approved by the district's board each yeardeleted text end before integration revenue deleted text beginwill bedeleted text endnew text begin isnew text end
awarded. If a district is applying for revenue for a plan that is part of a multidistrict
council, the individual district shall not receive revenue unless it ratifies the plan adopted
by its multidistrict council or approves a modified plan with a written explanation of
any modifications. Each plan shall deleted text begincontaindeleted text end:

(1) deleted text beginan identification ofdeleted text endnew text begin identifynew text end the integration issues at the sites or districts covered
by Minnesota Rules, parts 3535.0100 to 3535.0180;

(2) deleted text begina description ofdeleted text endnew text begin describenew text end the community outreach that preceded the integration
plan, such that the commissioner can determine whether the membership of the planning
councils complied with the requirements of Minnesota Rules, parts 3535.0100 to
3535.0180; deleted text beginand
deleted text end

(3) deleted text beginthedeleted text endnew text begin identifynew text end specific goals of the integration plannew text begin that is premised on valid and
reliable measures, effective and efficient use of resources, and continuous adaptation of
best practices;
new text end

new text begin (4) provide for implementing innovative and practical strategies and programs such
as magnet schools, transportation, research-based programs to improve the performance of
protected students with lower measured achievement on state or local assessments, staff
development for teachers in cultural competency, formative assessments, and increased
numbers of teachers of color that enable the district to achieve annual progress in realizing
the goals in its plan; and
new text end

new text begin (5) establish valid and reliable longitudinal measures for the district to use in
demonstrating to the commissioner the amount of progress it has achieved in realizing
the goals in its plannew text end.

By June 30 of the subsequent fiscal year, each district shall report to the commissioner in
writing about the extent to which the integration goals identified in the plan were met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
new text end

Sec. 54.

Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:

Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center new text beginor an alternative learning
program approved by the commissioner new text endunder sections 123A.05 and 123A.06, deleted text beginan
alternative program approved by the commissioner,deleted text end or a contract alternative program
under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than
1,020 hours in a school year for a secondary student, more than 935 hours in a school year
for an elementary student, or more than 425 hours in a school year for a kindergarten
student without a disability, that pupil may be counted as more than one pupil in average
daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess
of one pupil must be determined by the ratio of the number of hours of instruction
provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours
required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii)
the greater of 935 hours or the number of hours required for a full-time elementary pupil
in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of
425 hours or the number of hours required for a full-time kindergarten student without a
disability in the district to 425 for a kindergarten student without a disability. Hours that
occur after the close of the instructional year in June shall be attributable to the following
fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average
daily membership under this subdivision. A student in grades 1 through 12 must not be
counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an new text beginarea learning center
or new text endalternative new text beginlearning new text endprogram that has an independent study component, a district
must meet the requirements in this paragraph. The district must develop, for the pupil,
a continual learning plan consistent with section 124D.128, subdivision 3. Each school
district that has deleted text begina state-approved publicdeleted text endnew text begin an area learning center ornew text end alternative new text beginlearning
new text endprogram must reserve revenue in an amount equal to at least 90 percent of the district
average general education revenue per pupil unit deleted text beginless compensatory revenue per pupil
unitdeleted text endnew text begin, minus an amount equal to the product of the formula allowance according to section
126C.10, subdivision 2, times .0485, calculated without basic skills and transportation
sparsity revenue,new text end times the number of pupil units generated by students attending deleted text begina
state-approved publicdeleted text endnew text begin an area learning center ornew text end alternative new text beginlearning new text endprogram. The amount
of reserved revenue available under this subdivision may only be spent for program costs
associated with the deleted text beginstate-approved publicdeleted text endnew text begin area learning center ornew text end alternative new text beginlearning
new text endprogram. deleted text beginCompensatory revenue must be allocated according to section 126C.15,
subdivision 2.deleted text end new text beginBasic skills revenue generated according to section 126C.10, subdivision 4,
by pupils attending the eligible program must be allocated to the program.
new text end

(ii) General education revenue for a pupil in deleted text beginan approveddeleted text endnew text begin a state-approvednew text end
alternative program without an independent study component must be prorated for a
pupil participating for less than a full year, or its equivalent. The district must develop a
continual learning plan for the pupil, consistent with section 124D.128, subdivision 3.
Each school district that has deleted text begina state-approved publicdeleted text endnew text begin an area learning center ornew text end alternative
new text begin learning new text endprogram must reserve revenue in an amount equal to at least 90 percent of the
district average general education revenue per pupil unit deleted text beginless compensatory revenue per
pupil unitdeleted text endnew text begin, minus an amount equal to the product of the formula allowance according
to section 126C.10, subdivision 2, times .0485, calculated without basic skills and
transportation sparsity revenue,new text end times the number of pupil units generated by students
attending deleted text begina state-approved publicdeleted text endnew text begin an area learning center ornew text end alternative new text beginlearning new text endprogram.
The amount of reserved revenue available under this subdivision may only be spent for
program costs associated with the deleted text beginstate-approved publicdeleted text endnew text begin area learning center ornew text end alternative
new text begin learning new text endprogram. deleted text beginCompensatory revenue must be allocated according to section 126C.15,
subdivision 2.deleted text endnew text begin Basic skills revenue generated according to section 126C.10, subdivision 4,
by pupils attending the eligible program must be allocated to the program.new text end

(iii) General education revenue for a pupil in deleted text beginan approveddeleted text endnew text begin a state-approvednew text end
alternative program that has an independent study component must be paid for each hour
of teacher contact time and each hour of independent study time completed toward a
credit or graduation standards necessary for graduation. Average daily membership for a
pupil shall equal the number of hours of teacher contact time and independent study
time divided by 1,020.

(iv) For deleted text beginandeleted text endnew text begin a state-approvednew text end alternative program having an independent study
component, the commissioner shall require a description of the courses in the program, the
kinds of independent study involved, the expected learning outcomes of the courses, and
the means of measuring student performance against the expected outcomes.

Sec. 55.

Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:

Subd. 20.

Project-based average daily membership.

(a) new text beginProject-based is an
instructional program where students complete coursework for credit at an individual pace
that is primarily student-led and may be completed on site, in the community, or online. A
project-based program may be made available to all or designated students and grades
in a school. new text endTo receive general education revenue for a pupil enrolled in a public school
with a project-based program, a school must meet the requirements in this paragraph.
The school must:

(1) deleted text beginregister with the commissioner as a project-based program by May 30 of the
preceding fiscal yeardeleted text endnew text begin apply and receive approval from the commissioner as a project-based
program at least 90 days prior to starting the programnew text end;

(2) provide a minimum teacher contact of no less than one hour per week per
project-based credit for each pupil;

new text begin (3) ensure that the program will not increase the total average daily membership
generated by the student and that there will be the expectation that the students will be
making typical progression towards high school graduation;
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end maintain a record system that shows when each credit or portion thereof was
reported for membership for each pupil; and

deleted text begin (4)deleted text endnew text begin (5)new text end report pupil membership consistent with paragraph (b).

(b) The commissioner must develop a formula for reporting pupil membership to
compute average daily membership for each deleted text beginregistereddeleted text end new text beginapproved new text endproject-based deleted text beginschooldeleted text endnew text begin
programnew text end. Average daily membership for a pupil in deleted text begina registereddeleted text end new text beginan approved new text endproject-based
program is the lesser of:

(1) 1.0; or

(2) the ratio of (i) the number of membership hours generated by project-based
credits completed during the school year plus membership hours generated by credits
completed in a seat-based setting to (ii) the annual required instructional hours at that
grade level. Membership hours for a partially completed project-based credit must be
prorated.new text begin General education revenue for a pupil in a project-based program must be
prorated for a pupil participating for less than a full year, or its equivalent.
new text end

new text begin (c) For a program that has not been approved by the commissioner for project-based
learning but an auditor or other site visit deems that any portion or credits awarded
by the school are project-based, student membership must be computed according to
paragraph (b).
new text end

Sec. 56.

Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

(a) For fiscal years
2007 deleted text beginand laterdeleted text endnew text begin, 2008, and 2009new text end, the basic alternative teacher compensation aid for a
school district with a plan approved under section 122A.414, subdivision 2b, equals deleted text begin65deleted text end
new text begin 73.1 new text endpercent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.

new text begin (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for
a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent
of the alternative teacher compensation revenue under section 122A.415, subdivision 1.
The basic alternative teacher compensation aid for an intermediate school district or
charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
the recipient is a charter school, equals $260 times the number of pupils enrolled in the
school on October 1 of the previous year, or on October 1 of the current year for a charter
school in the first year of operation, times the ratio of the sum of the alternative teacher
compensation aid and alternative teacher compensation levy for all participating school
districts to the maximum alternative teacher compensation revenue for those districts
under section 122A.415, subdivision 1.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
1, the state total basic alternative teacher compensation aid entitlement must not exceed
$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under section 122A.415 so as not to
exceed these limits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 57.

new text begin [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin A P-20 education partnership is
established to create a seamless system of education that maximizes achievements of
all students, from early childhood through elementary, secondary, and postsecondary
education, while promoting the efficient use of financial and human resources. The
partnership shall consist of major statewide educational groups or constituencies or
noneducational statewide organizations with a stated interest in P-20 education. The initial
membership of the partnership includes the members serving on the Minnesota P-16
Education Partnership and four legislators appointed as follows:
new text end

new text begin (1) one senator from the majority party and one senator from the minority party,
appointed by the Subcommittee on Committees of the Committee on Rules and
Administration; and
new text end

new text begin (2) one member of the house of representatives appointed by the speaker of the
house and one member appointed by the minority leader of the house of representatives.
new text end

new text begin The chair of the P-16 education partnership must convene the first meeting of the
P-20 partnership. Prospective members may be nominated by any partnership member and
new members will be added with the approval of a two-thirds majority of the partnership.
The partnership will also seek input from nonmember organizations whose expertise can
help inform the partnership's work.
new text end

new text begin Partnership members shall be represented by the chief executives, presidents, or
other formally designated leaders of their respective organizations, or their designees. The
partnership shall meet at least three times during each calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Powers and duties; report. new text end

new text begin The partnership shall develop
recommendations to the governor and the legislature designed to maximize the
achievement of all P-20 students while promoting the efficient use of state resources,
thereby helping the state realize the maximum value for its investment. These
recommendations may include, but are not limited to, strategies, policies, or other actions
focused on:
new text end

new text begin (1) improving the quality of and access to education at all points from preschool
through graduate education;
new text end

new text begin (2) improving preparation for, and transitions to, postsecondary education and
work; and
new text end

new text begin (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers.
new text end

new text begin By January 15 of each year, the partnership shall submit a report to the governor
and to the chairs and ranking minority members of the legislative committees and
divisions with jurisdiction over P-20 education policy and finance that summarizes the
partnership's progress in meeting its goals and identifies the need for any draft legislation
when necessary to further the goals of the partnership to maximize student achievement
while promoting efficient use of resources.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin Notwithstanding section 15.059, subdivision 5, the partnership
is permanent and does not expire.
new text end

Sec. 58.

Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:

Subd. 2.

Person less than 18 years of age.

(a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:

(i) a public, private, or commercial driver education program that is approved by
the commissioner of public safety and that includes classroom and behind-the-wheel
training; or

(ii) an approved behind-the-wheel driver education program when the student is
receiving full-time instruction in a home school within the meaning of sections 120A.22
and 120A.24, the student is working toward a homeschool diploma, deleted text beginthe student's status
as a homeschool student has been certified by the superintendent of the school district in
which the student resides, anddeleted text end the student is taking home-classroom driver training with
classroom materials approved by the commissioner of public safetynew text begin, and the student's
parent or guardian has certified the student's homeschool and home-classroom driver
training status on the form approved by the commissionernew text end;

(2) has completed the classroom phase of instruction in the driver education program;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the applicant's knowledge of traffic
laws;

(5) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise, then
(ii) the parent or spouse of the parent having custody or, in the event there is no court order
for custody, then (iii) the parent or spouse of the parent with whom the minor is living
or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or,
in the event a person under the age of 18 has no living father, mother, or guardian, or is
married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close
family member, or adult employer; provided, that the approval required by this clause
contains a verification of the age of the applicant and the identity of the parent, guardian,
adult spouse, adult close family member, or adult employer; and

(6) has paid the fee required in section 171.06, subdivision 2.

(b) new text beginFor the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii), the commissioner may request verification of a student's
homeschool status from the superintendent of the school district in which the student
resides and the superintendent shall provide that verification.
new text end

new text begin (c) new text endThe instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.

Sec. 59.

Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:

Subdivision 1.

Offenses.

(a) The department shall immediately revoke the license
of a driver upon receiving a record of the driver's conviction of:

(1) manslaughter resulting from the operation of a motor vehicle or criminal
vehicular homicide or injury under section 609.21;

(2) a violation of section 169A.20 or 609.487;

(3) a felony in the commission of which a motor vehicle was used;

(4) failure to stop and disclose identity and render aid, as required under section
169.09, in the event of a motor vehicle accident, resulting in the death or personal injury
of another;

(5) perjury or the making of a false affidavit or statement to the department under
any law relating to the new text beginapplication, new text endownership or operation of a motor vehiclenew text begin, including
on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to
issue an instruction permit to a homeschool studentnew text end;

(6) except as this section otherwise provides, three charges of violating within a
period of 12 months any of the provisions of chapter 169 or of the rules or municipal
ordinances enacted in conformance with chapter 169, for which the accused may be
punished upon conviction by imprisonment;

(7) two or more violations, within five years, of the misdemeanor offense described
in section 169.444, subdivision 2, paragraph (a);

(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
paragraph (b);

(9) an offense in another state that, if committed in this state, would be grounds for
revoking the driver's license; or

(10) a violation of an applicable speed limit by a person driving in excess of 100
miles per hour. The person's license must be revoked for six months for a violation of
this clause, or for a longer minimum period of time applicable under section 169A.53,
169A.54, or 171.174.

(b) The department shall immediately revoke the school bus endorsement of a driver
upon receiving a record of the driver's conviction of the misdemeanor offense described in
section 169.443, subdivision 7.

Sec. 60.

Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:

Subdivision 1.

Violations.

With regard to any driver's license, including a
commercial driver's license, it shall be unlawful for any person:

(1) to display, cause or permit to be displayed, or have in possession, any fictitious
or fraudulently altered driver's license or Minnesota identification card;

HF 2

Bill Text Versions

ARTICLE 1

GENERAL EDUCATION

Section 1.

Subd. 11.

Permanent school fund reporting.

Sec. 2.

120A.40 SCHOOL CALENDAR.

Sec. 3.

Subd. 1a.

Effective staff development activities.

Sec. 4.

Subdivision 1.

Staff development revenue.

Sec. 5.

Subd. 3.

Statement for comparison and correction.

Sec. 6.

Subd. 3.

Failure to limit expenditures.

Sec. 7.

Subdivision 1.

Nonresident tuition rate; other costs.

Sec. 8.

Subd. 2.

Foreign exchange pupils.

Sec. 9.

Subd. 2.

Building allocation.

Sec. 10.

Subd. 4.

Separate accounts.

Sec. 11.

Subd. 9.

Referendum revenue.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 6.

Lease purchase; installment buys.

Sec. 13.

Subd. 2.

Retired employee health benefits.

Sec. 14.

126C.44 SAFE SCHOOLS LEVY.

new text begin EFFECTIVE DATE. new text end

Sec. 15.

Subd. 7.

Alternative attendance programs.

Sec. 16.

Subdivision 1.

Approval by electors; exceptions.

new text begin EFFECTIVE DATE. new text end

Sec. 17. new text beginEARLY GRADUATION INCENTIVES PROGRAM WORKING GROUP.new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of education to convene. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 18. new text beginONETIME GENERAL EDUCATION REVENUE REDUCTION REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION ACCOUNT.new text end

new text begin Subdivision 1. new text end

new text begin General education reduction. new text end

new text begin Subd. 2. new text end

new text begin Allocation of federal fiscal stabilization funds. new text end

Sec. 19. new text beginAPPROPRIATIONS; GENERAL FUND.new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

new text begin Subd. 5. new text end

Sec. 17. new text beginEARLY GRADUATION INCENTIVES PROGRAM WORKING
GROUP.
new text end

Sec. 18. new text beginONETIME GENERAL EDUCATION REVENUE REDUCTION
REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION
ACCOUNT.
new text end

Sec. 19. new text beginAPPROPRIATIONS; GENERAL FUND.
new text end

Sec. 20. new text beginAPPROPRIATIONS; FEDERAL FUND.
new text end

new text begin Examples of good government in procurement and shared services;
clearinghouse. new text end

120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

120B.13 ADVANCED PLACEMENT deleted text beginANDdeleted text endnew text begin,new text end INTERNATIONAL
BACCALAUREATEnew text begin, AND CONCURRENT ENROLLMENTnew text end PROGRAMS.

120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
PLACEMENT deleted text beginANDdeleted text endnew text begin,new text end INTERNATIONAL BACCALAUREATEnew text begin, AND
CONCURRENT ENROLLMENTnew text end PROGRAMS.

new text begin [120B.299] DEFINITIONS.
new text end